Interest rate rises have caused growth in mortgage lending to slow, but the Council of Mortgage Lenders still expects record levels of lending during 2007.
Gross mortgage lending reached £30.6 billion last month, according to CML, a new May record. Lending figures in May were 12% higher than April’s total of £27.4 billion, and 5% higher than the £29 billion seen in the same month last year. However, there are signs that the rate of growth is slowing, compared with the first four months of the year, after a sustained period of rapid growth seen in 2006. Typical year-on-year growth is around 12-15% but is expected to fall to around 5% between 2006 and 2007. Michael Coogan, director general of CML, comments: “Going forward we expect lend...
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