| Gross mortgage lending soars in October |
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| Tuesday, 20 November 2007 | |
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Gross mortgage lending grew to an estimated £32.4 billion in October, rising nearly 6 per cent, according to the Council of Mortgage Lenders.
The October figure compares to £30.6 billion in September 2007 and £30.6 billion in October last year. While the increase is higher than the 3 per cent seasonal rise that might typically be expected between September and October, the figure predominantly reflects applications and approvals from before the mortgage market became affected by wholesale funding problems. The CML said it expects mortgage advances to be somewhat lower over the rest of the fourth quarter, reflecting the Bank of England’s data that shows mortgage approvals have declined during the third quarter. CML Director General Michael Coogan commented, “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,” he added. Related articles
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