Borrowing costs accelerate
Advanced borrowing costs helped forward by a decline in gross
lending during September period, CML’s mortgage survey
£30.6 billion was September's total; it was less than August
which was £34 billion however greater than one
year ago (£29.2 billion in September 2006 period).
During September remortgaging and other lending stayed afloat.
Remortgaging was much more greater compared with August figures
(£11 billion) and last year in September (£10 billion).
CML's director general Michael Coogan spoke further: "Data indicates
that higher interest rates are now beginning to slow the housing
market, in line with our recently published forecasts. Looking
forward, we expect remortgaging to continue to hold up as borrowers
coming off fixed rate deals look to re-finance."
He added: "The Bank of England's decision not to reduce rates
earlier this month will have disappointed many borrowers. Looking
forward, affordability is likely to continue to constrain buying
activity, which we expect to remain subdued. Interest rates have
now reached their peak and a move downwards will help ease some
of the pressure on household finances."
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