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21 Nov 07 - Mortgage Lending Sees Recovery
Mortgage lending by building societies picked up during
October with total advances hitting £4.65bn - their
highest level since March, new figures show. The Building
Societies Association said net lending, which removes repayments
and redemptions, reached £1.12bn, a four-month high.
Data from the Council of Mortgage Lenders, which reports
on lending by all groups, also reveals a similar pattern.
It said total mortgage lending soared to £32.36bn
in October, nearly 6% more than the same month last year.
But while the rise is higher than the 3% jump normally
seen over the period, this mainly reflects applications
and approvals that were made before the mortgage market
was hit by funding problems due to the credit crunch.
CML director general Michael Coogan said: "The next
few months will be a testing time as ongoing pressures in
financial markets feed through into the wider economy.
"Funding constraints will continue to restrict lending
activity and make loans more expensive.
"The Bank of England's recent quarterly inflation report
reinforced the likelihood of a reduction in rates early
next year, and that should provide some relief for borrowers
sooner rather than later."
Source: Building Societies
Association and Source: Council
of Mortgage Lenders
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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