Mortgage lending rising each year
Mortgage lending throughout the UK has peaked record levels
CML the Council of Mortgage Lenders released new figures and
this showed that gross mortgage lending peaked over £34.2
billion during June, this an increase from
£31.4 billion May period.
Even as mortgage lending continues to rise, the increase was
less than before between May and June in 2006, increased figures
were 9 per cent to 12 per cent in the following year and 15 per
cent in 2005.
CML director general Michael Coogan commented, "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."
Senior economist at the Royal Institution of Chartered Surveyors,
Oliver Gilmartin said: "Record borrowing levels will only add
to the concerns at the Bank of England that higher interest rates
will be necessary to curb consumers' appetite for debt.
"However, the continuing rise in longer term borrowing costs
means that fixed rate
mortgage deals are becoming increasingly
costly and this will start to have a more material impact on
borrowers as we move into the winter."
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