Mortgage figures show surprise growth

Posted: 29 Mar 2007 11:07:29 GMT

New figures show that mortgage lending and mortgage approvals in Britain rose well above expectations in February.

New figures show that mortgage lending and mortgage approvals in Britain rose well above expectations in February.

Bank of England figures showed that instead of an expected decline to £9.4 billion, mortgage lending rose from January's figure of £9.5 billion to £10.3 billion in February.

The figures for mortgage approvals also defied predictions of a slight decline by remaining constant at 119,000.

Many recent statistics, such as the Nationwide housing survey published yesterday, had suggested a slowdown in the market while some analysts have predicted a US-style crash, but the evidence of the latest Bank of England statistics may suggest that the housing market is remaining robust despite the three interest rate rises since the start of August 2006, which have taken the base rate from 4.75 per cent to 5.25 per cent.

The Bank's monetary policy committee will meet early next month to decide if a further rate rise is necessary.


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