Mortgage lending: growth eases
The British Bankers Association stated on Monday that underlying
mortgage lending rose by 4.6 billion pounds in January, down
from 5.3 billion pounds rise in December.
The underlying British mortgage lending growth eased in the
month of January but was a little below than its average.
According to British Bankers Association (BBA), even though the
mortgage
lending rose by 4.6 billion pounds in the month of January, down
from 5.3 billion pounds in December but it was slightly below of
the six month average of 4.7 billion pounds.
But the Building Societies Association (BSA) had a different
story to tell. According to BSA the value of mortgage approvals
i.e. loans agreed but yet not made were the highest in the past
two years at 4.3 billion pounds in January.
The Council of Mortgage lenders on Monday stated that the in January the
gross mortgage lending stood at 23 billion pounds. The highest
lending figure for January on record beating the past figure of
17.4 billion pounds lend in January 2005.
Many analysts feel that the current buoyancy in the property
market would continue to accelerate in the following months.
This is something the Bank of England would be keeping a close
eye on. Many feel the rate cut made by the Bank of England last
August to 4.5% has played a major role in reviving Britain's
property market.
A property survey has indicated that the asking price for
British homes has had their strongest monthly gain in the past
two years from January to mid February, breaking the past
average of 200,000 pounds.
Expert opinion: Mortgage lending growth has eased out at the
start of the year itself and is expected to continue. Plus
mortgage lending has been strong in all categories which reflect
the confidence the British have about the future of housing
market and its prices.