Mortgages rise CML reveals

24/04/2007

The Council of Mortgage Lenders (CML) revealed that Britain’s mortgage lending has increased.

Evaluating January and February figures, March was 2007’s highest record increase with 31.3 billion pounds lent via mortgages.

Looking on February this shows us an increase of nearly 22 per cent from the figure 24.6 billion pounds, which was quite more less due to seasonal changes within the market.

2006 March period to 2007 March lending was up 10 per cent, this giving less confidence for new homebuyers to enter the property market.

Michael Coogan, CML director had his views on this scenario: "It is clear that many borrowers are taking sensible steps to shelter against higher mortgage costs," he said.

"We continue to expect mortgage lending to reach a record £360 billion this year."

From Global Insight, Howard Archer stated that data formatted by the Building Society Association was forwarded today, this showed variations on mortgage approvals reaching a 5 month decrease, indicating the property market starting to slow down.

"There are clear signs in the March mortgage data… that housing market activity may finally be coming off the boil as higher interest rates and elevated house prices increasingly squeeze new buyers out of the market and make it more difficult for existing house owners to trade up," he finalised.

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