Mortgage lending remains “robust” in 2007

Mortgage lending remained robust in January 2007, according to data released by the Council of Mortgage Lenders (CML).

The CML’s figures show that some £26.8 billion was taken on by borrowers during the month.

Although this was six per cent less than the £28.5 billion lent in December 2006, it compares favourably with the £23 billion borrowed during January 2006.

Michael Coogan, director general of the CML, said that the “robust” start to the mortgage-lending market was set to continue over the next few months.

However, Mr Coogan also indicated that there was a certain degree of uncertainty because of the expectation that there would be a further quarter point interest rate rise during 2007.

“Because of this uncertainty, it would be surprising if some home buyers did not review the timing of their decision now,” he added.

Figures released by the British Insurance Brokers’ Association also showed a slight downturn, with the group saying mortgage lending amounted to £5.6 billion last month, compared to 5.7 billion in December 2006.

Tags: director, timing, expectation, insurance brokers association, Business Finance, home, degree of uncertainty, mortgage lenders