Confidence in mortgage sector growing, says A&L

06 June 2006
According to Alliance and Leicester's Borrowing Monitor, levels of consumer confidence in the mortgage market are higher than at any time this year.

When questioned for the survey, 15 per cent of households said they planned to borrow more for moving, buying a new property or re-mortgaging by mid-summer. This level of intention is more than double that of January.

Although intentions are no guarantee of action, the figures demonstrate the increasing confidence consumers have in the mortgage sector, an impression underscored by the significant year-on-year increase in new lending, up by almost 30 per cent.

"We are seeing greater confidence in the mortgage market from consumers," said Chris Rhodes, managing director of Alliance and Leicester retail banking.

"It's particularly pleasing to see the increased confidence amongst the under 30s," he continued. "Increased first time buyer activity enables others to move up the ladder."

Mr Rhodes also noted that affordability of mortgage lending in relation to household expenses "remains good", a responsible attitude to borrowing that inspires confidence and a stable market for the future.

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