Mortgage lending may be easing
June 22, 2007 by admin
Filed under News, News-Mortgages
Mortgage lending has continued to grow, with figures for May breaking records for the month.
The Council of Mortgage Lenders (CML) says that May lending figures reached £30.6 billion, a 12 per cent increase on the £27.4 billion that was lent in April.
The figure was also a five per cent increase on the £29 billion that was lent in May 2006 but the CML says that this shows that the market is easing.
Despite breaking records, the year-on-year growth of five per cent is well below the typical 12-15 per cent increase we are used to seeing.
Although this is a clear sign of the market easing up, the CML says that May’s figures remain very strong.
“While today’s lending figure is a new record for the month of May, it does indicate that the market is slowing down following the rapid and sustained growth we saw last year,” said Michael Coogan, director general of the CML.
“Going forward we expect lending to ease as we progress through the year, but the market will remain in good shape.
“Although further interest rate rises will continue to dampen demand, we are still on course to meet our prediction of a record £360 billion of lending during 2007,” he added.
Some experts are expecting the introduction of Home Information Packs into the property market from August of this year to help boost house prices.
