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22 Feb 08 - Shock Increase In Mortgage Lending
A surprise rebound in mortgage lending during January has
seen total advances jump by 11%, new figures have revealed.
The Council of Mortgage Lenders said lending has risen
from £23.92bn in December to £26.5bn in the
first month of this year.
The group said the performance was surprisingly good considering
the difficult conditions in both the housing and mortgage
markets since last summer.
However, Michael Coogan, director-general of the CML warned
volumes are expected to be lower in the coming months following
a fall in mortgage approvals towards the end of 2007.
He said; "Gross lending held up well in January. However,
there is considerable uncertainty in the housing market
at the moment and we expect lending volumes to be lower
in the coming months."
He added that, in the short-term, demand was likely to
come from people who were remortgaging, with an estimated
1.4 million people due to come to the end of fixed-rate
deals this year, rather than from people buying a new home.
News items supplied by SelectNews, produced by PA Business,
part of the group that owns The Press Association, the UK's
national news agency. Copyright (c) PA Business 2007.
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