Bank of England reveals May upturn in mortgages

30 June 2005
Mortgage borrowing increased in the UK in May, according to figures released yesterday by the Bank of England (BoE).

The BoE data indicates that 96,000 mortgages were taken out in May - 1,000 more than this time last year.

According to Howard Archer, chief economist at Global Insight, the increase is indicative of a general upturn in the market, even if that upturn is somewhat subdued.

"Following some recent softer data and survey evidence, the BoE mortgage lending and approvals data indicate that a modest seasonal upturn in housing market activity is continuing," Mr Archer stated.

"The data support our view that the housing market is more likely to see an extended period of relatively subdued activity and soft prices rather than undergo a sharp correction."

The actual value of the mortgages taken out, which stood at £22.7 billion last month, actually fell by more than £1 billion, the BoE revealed.

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