Mortgage lending increased to its peak
Mortgage lending last month rose to record levels, simply because
borrowers were getting ready for the next interest rate increase,
CML, Council of Mortgage Lenders reveals.
During June gross mortgage lending peaked at £34.2bn, showing
an increase of 9 per cent on the last month when homeowners remortgaged to offsets.
CML's director general, Michael Coogan said: "Despite the record
level of mortgage lending, there are signs that the market is
feeling the cumulative effects of the five interest rate rises
we have seen over the past year.
"This effect will become much more evident in the coming months
as borrowers with fixed-rate
mortgages come off their existing
deal into a significantly higher interest-rate environment."
During June period unsecured lending remained unchanged, as a £0.5bn
decrease during May. £0.1bn drop in borrowing via credit
cards was negated by a £0.1bn increase in the value of
overdrafts and personal loans.
Household saving constantly rose, leaving large deposits into
banks increase by £3bn over a time period, in conjunction
with latest monthly average of £3.1bn.
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