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Mortgage articles 1 - Mortgage Lending Grows by 19% in a Month ;page 1

Monday 24 June 2002

Mortgage lending reached a new peak for the third month in a row in May when gross advances totalled 19.5 billion - an increase of 19% over April's revised total of 16.4 billion.

This unprecedented increase reinforces the CML's view that a modest rise in interest rates sooner rather than later is desirable to avoid the possibility of sharper increases in the future. The combination of higher interest rates this summer and affordability constraints would help ensure that there is a soft landing for the housing market and place it on a sounder footing for the long term.

Although remortgaging remained buoyant, the housing market provided the main stimulus with loans for house purchase increasing to 12 billion (from 9.2 billion in April), the highest monthly figure since records began. 

The Director General of the CML, Michael Coogan, said: next page

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