A Slow Down for Mortgage Lending
According to the latest findings of the Council of Mortgage Lender (CML), the mortgage lending market has slowed down. As of the end August this year, lending was down by 3% than at the same time last year. The news makes it more likely that the property market may be finally slowing down as many recent reports have stated.
Despite the slight drop, mortgage lending is still at relatively high levels despite the increased interest rates of late. June and July saw an increase in borrowing probably as many people remortgaged their houses due to the Bank of Englands interest rises.
It seems it is not so much a fall in customer demand but more a direct consequence of the tightened criteria on lending that is now present after the current financial crisis in mortgage fundings.
Total lending is 6% lower than July this year, but the amount borrowed still amounts to £32 billion.
A chief economist for the UK, Howard Archer, found that the results showed the housing market was holding up despite higher interest rates, however he said he did expect the demand in housing to fall in the future by a significant amount.
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