View more on these topics

Mortgage lending rises to new record in May

Mortgage lending continued to boom in May, with Council of Mortgage Lenders&#39 figures showing that gross advances rose by 19 per cent to £19.5bn from £16.4bn in April and by 43 per cent from £13.6bn in May 2001.

The Building Societies&#39 Association says gross adv-ances by members rose by 27 per cent to £3.4bn in May from £2.7bn in April and by 54 per cent from £2.2bn for May last year.

According to the CML, loans for house purchases inc-reased to £12bn in May, the highest recorded monthly figure, a rise of 30 per cent from £9.2bn in April and 41 per cent from £8.5bn in May last year.

It says although remortgaging remained strong – up to £6.4bn last month from £6.3bn in April and £4.2bn in May 2001 – it accounted for only 33 per cent of total lending compared with 38 per cent in April.

House purchases accounted for 62 per cent of the market in May compared with 56 per cent in April. The CML says this is the main stimulus behind the booming housing market.

Director general Michael Coogan says: “With rates at historically low levels, a modest rise in interest rates this summer would help ensure that the housing market is sustainable in the future without causing payment difficulties for the overwhelming majority of borrowers.”

Recommended

Smith calls for part-time flexibility

New Secretary of State for Work and Pensions Andrew Smith is calling for more flexibility in pensions rules to allow people to work part-time in to retirement. Speaking at the TUC conference last week in his first public speech since taking over from Alistair Darling, Smith said many people face a &#39sheer cliff edge between […]

WPA gets flexible

WESTERN PROVIDENT ASSOCIATION FLEXIBLE HEALTH Type: Individual private medical insurance Minimum-maximum ages: From birth-65 Maximum benefit: No maximum Cover provided: Standard cover &#45 inpatient, daypatient and outpatient cover for cancer care. Inpatient and daypatient cover for hospital treatment, specialists fees, diagnostic scans and tests. Inpatient cover for prostheses. Outpatient cover for consultations with a consultant/specialist […]

Inside Edge: Andrew Bedford

Despite the numerous legislative burdens placed on them over the years, IFAs have proved remarkably adaptable and able to produce opportunities where only problems seem to exist. The myth of the commission-hungry salesman belies the fact that IFAs have proved to be the lowest-cost distribution channel for most providers, have the lowest level of complaints […]

UK average wealth reaches £26,200

The average wealth of Britons rose by 34 per cent to £26,200 in summer 2001 from £19,522 in 1996, according to the latest Wealth of the Nation report from data analyst Caci Information Services.The joint-wealthiest postcodes are Thorntonhall, South of Glasgow and Fleet Elvetham Heath in Hampshire, with 13 per cent of households earning an […]

The savvy consumer

In last year’s FCA thematic review of the mortgage market, one of the key things highlighted was the “savvy consumer”. That’s the client who comes in the door with a very clear idea of what they need and expect you to get them it. They don’t think they need advice, they have after all consulted […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment