(1888PressRelease)
July 27, 2007 - London: It seems that more money was borrowed through mortgages and secured loans deals in the month of June. This fact is inferred from the figures released by the Council of Mortgage Lenders (CML).
Apparently, Britons took loans of at least £34 billion in May which is a hike of 9 per cent in comparison to the month of May. Although, this is good news for the year 2007, it seems that in comparison to the last two years, the growth rate has certainly being low. The Council of Mortgage Lenders (CML) hints that the recent base hike by the Bank of England is partly responsible for the fluctuations in the housing market.
Michael Coogan, the CML's Director General commented that “Despite the record level of mortgage lending, there are signs that the market is feeling the cumulative effects of the five interest rate rises we have seen over the past year…” The effect will be more pronounced when borrowers with fixed-rate secured loans reach the end of their freezed time frame and enter into a much higher interest rate setting.
