Record lending in February
Mortgage lending reached record levels last month with a sharp increase in net advances compared to like figures for February 2006 as well as an increase in mortgage approvals.
The Building Societies Association (BSA) reports the strongest February on record for mortgage lending with total approvals reaching £4,917 million during the month, up from £3,646 million a year previous.
Increased lending points towards increased confidence among buyers looking to get on the housing ladder, but in a climate of relatively high interest rates this could spell increased debt in the future.
In addition, recent reports that many lenders have increased application fees could be cause for further concern over debt facing borrowers.
Adrian Coles, BSA director-general warns that February’s strong figures could signal a peak in the market, arguing that the effects of recent base rate increases have yet to be realised.
“These are strong figures, but we may be seeing the peak of the market,” he stated.
“Therefore, mortgage lending figures might become a little more subdued as the year progresses.”
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