Mortgage lending up

Posted: 20 Nov 2007 11:05:23 GMT

Gross mortgage lending was up in October, according to the latest figures from the Council of Mortgage Lenders (CML).

Gross mortgage lending was up in October, according to the latest figures from the Council of Mortgage Lenders (CML).

It says that lending reached £32.4 billion in the month, six per cent higher than the £30.6 billion lent in September and in October 2006.

The figures are good news for homeowners as they show that confidence is returning to the market and the appetite to buy has not diminished.

Michael Coogan, director general of the CML, also said that he believes the market will be freed up even more when the Bank of England cuts the base rate of interest.

"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 commented.

The Bank predicted last week that interest rates would be cut at least twice in 2008, bringing rates down from 5.75 per cent to 5.25 per cent.

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