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Aug 24, 2006
UK’s
mortgage lending market continues to grow at a steady pace despite recent
interest rates hikes announced by Bank of England. According to the Council for
Mortgage Lenders (CML), gross lending in July was 6 percent below the £32.4
billion of lending in June, but 19 percent higher than the £25.5 billion of
lending in the same month last year.
“Seasonal factors are continuing to
support housing transactions and buoy house price growth. Bank of England
approvals data shows that there is a strong appetite among borrowers for
remortgages and other types of loan,” says CML Director General Michael Coogan.
He noted that the timing of the Monetary Policy Committee's interest rate rise
caught some people by surprise, though its effect is not reflected in today's
figures. “So, with financial markets suggesting the possibility of at least one
more rate rise before the end of the year, we expect to see more subdued
lending over the coming months,” he explained.
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