The Council of Mortgage Lenders (CML) revealed statistics, according to which, mortgage lending in the country had revived and reached lofty heights in August after July 2004.
CML reported that gross mortgage lending in August had risen by 27.5 bln stg against 25.2 bln stg of July. This amount was noticeably 4% more than 26.5-bln stg that was posted way back in August 2004 and the highest amount ever since July 2004.
The Lenders association attributed the rise in lending to an upsurge in the remortgaging trend. Data saw remortgaging rise by 15 pct and reaching 11.7 bln stg in August as compared to a lesser 10.2 bln in July. This was the highest amount recorded after October 2003. CML justified the remortgaging trend saying that it indicated that borrowers were benefiting from “lower interest rates and remortgaging into cheaper deals, especially as a large number of people will have been coming to the end of their previous deals.”
While mortgage lending increased by 12.5 bln in August from July’s 11.8 bln stg, it still remained lower than 12.8 bln stg of August last year. Director General of CML, Michael Coogan explained, “The fact that the housing market is holding up is likely to be welcome news for the MPC, as it struggles to reconcile the very different pictures emerging from different sectors of the economy. We continue to expect a moderate market for the foreseeable future.”
Posted
on : Wed, 21 Sep 2005 13:15 GMT | Mortgages News
By : Rob Davis
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