View more on these topics

Lending at record high but CML says fall is on the way

Mortgage lending in July hit its highest level since records began in 1998 but is likely to fall later in the year, according to the Council of Mortgage Lenders.

Despite the CML&#39s figures showing a leap in gross lending to £15.5bn in July from £14.8bn in June, it anticipates a slowdown in house price inflation and lending as the UK economy feels the effects of the global slump.

The CML expects house prices to rise by only 3 per cent in 2002 and 2003 after being forced to more than double its prediction for 2001 to 11 per cent from 5 per cent following unexpectedly strong growth.

Although it has revised its forecast for the year, figures from the Building Societies&#39 Association show banks have driven the upsurge as mutuals have experienced a slight downturn in business.

Society gross advances fell to £2.12bn in July from £2.28bn in June, with approvals for loans not yet made down to £2.26bn from £2.3bn. The BSA says the drop may be due to fears of a global recession.

CML director general Michael Coogan says: “Levels of lending continued to beat their previous records but are likely to slow down as we move into next year.

“The good news is that households are in a strong position to cope with any deterioration, with mortgages still affordable, and set to remain so, given that interest rates are expected to stay low.”

Recommended

Julian Gibbs

Eurolife has produced yet another ingenious high-return product called the Bluechip Plus Plan. It pays 10.5 per cent a year, 0.82 per cent a month or 34 per cent growth over three years, tax-free through Isas and Peps. With the stockmarket at current levels, this can be regarded as a lowto medium-risk plan as shares […]

25 days to issue a cheque

Is big beautiful? I have just been told by Scottish Widows that, in connection with an external transfer into income drawdown with another provider, they are currently taking 25, yes 25, working days to issue a cheque. Let us hope that the transfer takes place before I have to deal with his widow. David RawleDavid […]

Pink buy-to-let hits 85

Pink Home Loans has introduced a buy-to-let mortgage which has a 0.75 discount until October 31, 2001.The mortgage has a current payable rate of 5.99 per cent and is available for loans of up to 85 per cent of valuation. Up to five properties can be bought within a total maximum advance of £500,000.An early […]

Advisers prefer to use drawdown specialists

Leading IFAs oppose income drawdown becoming a permitted activity as they favour referring clients to drawdown specialists. Sofa conference delegates were asked whether they bel-ieved advisers discussing inc-ome drawdown should take the K10 exam. But while some IFAs saw the move as inevitable, others argued that drawdown cannot be considered in isolation from more general […]

Cricket - thumbnail

England vs Australia: pensions

Well, the cricket season is here, and England and Australia are stepping up to the wicket. Although we compete with each other in the sporting world, when it comes to pensions, Australia’s pension programme is held up as a model for our auto-enrolment initiative. Auto-enrolment was introduced because people weren’t saving enough into their pensions, and it is still early days but signs are positive. However, in Australia, saving into a pension is compulsory, and in fact employers are the ones who have to pay in. Employees in Australia can make additional contributions into their pensions, but they don’t have to. Should the onus be on the employer or employee to save? Well in the UK we think it’s both, but to get ‘adequate’ savings for retirement it’s the employee who has to pay more in.

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com