Mortgage lending strong in July

Posted: 20 Aug 2007 10:58:55 GMT

New figures show that mortgage lending rose in July and at a faster pace than previous months.

New figures show that mortgage lending rose in July and at a faster pace than previous months.

The British Bankers' Association (BBA) has published statistics for July, which show that the amount borrowed for buying a home increased by an underlying £5.7 billion.

This is an increase on the £5.4 billion recorded in June and the recent monthly average.

Commenting on the figures, David Dooks, director of statistics at the BBA, said that the strong lending figures were a surprise.

"Longer-term trends in mortgage lending are little changed but July's strong rise was surprising, given the expected cumulative impact of higher interest rates," he commented.

"This resilience shows the popularity of home ownership and also reflects more remortgaging activity."

The Bank of England has increased the base rate five times in the last 12 months and although credit card borrowing fell as a result, it appears that the desire to own a property is just too strong for many people.

© Houseladder Ltd