Product category:
Banking / credit / debt
News Release from: Alliance & Leicester | Subject: Banking
Edited by the Insidemoneytalk Editorial
Team on 23 May 2007
Alliance and Leicester comments on
today's CML lending figures
Stephen Leonard, Director of Mortgages at Alliance and Leicester:
"Today's CML figures clearly show borrowers are now responding to the effect of a one per cent base rate rise, in the past year, with year on year lending up 18 per cent, but month on month lending down by nine per cent in April compared with March "At the beginning of the year, the mortgage market was anticipating two or three base rate rises and the month on month slowdown could also be an effect of borrowers bringing their purchasing decisions forward or 'pre-buying' in the first quarter of this year
This article was originally published on Insidemoneytalk on 23 Feb 2007 at 8.00am (UK)
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Now these purchases have cleared, the rising base rate is starting to impact on the level of mortgage lending.
"CML's quarterly statistics indicate that while house purchase activity is strong, remortgage activity is slowing, showing lenders are becoming more proactive in retaining customers.
"Commentators now think that it is likely that lending figures for this year will continue to rise compared with last year but we will probably see the month on month figures average between the ?28-30 billion mark.
With rates now at the top of the curve, it is likely fixed rates will not be as dominant.
Brokers taking a longer-term view are likely to start recommending tracker rates over fixed rates to those borrowers who are financially flexible.".
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