This website uses cookies to improve user experience. By using our website you consent to all cookies in accordance with our Cookie Policy. Read more

Mortgage lending peaks in the absence of first-time buyers

01 September 2003
New figures released this morning by the Bank of England show that mortgage lending hit new heights in July.

Lending rose by a net £8.35 billion over the month, the Bank reports - the biggest monthly increase since records began in 1993.

However, consumer credit only rose by £1.54 billion in the same period, as against £2.15 billion in June.

111,000 new mortgages were taken out in July - at a time when first time buyers entering the housing market were at an all-time low.

Simon Rubinsohn, chief economist at Gerrard, commented to the BBC, "That can lead to only one conclusion, that equity release is continuing apace."

“There has been a pick up from the lows in April, May time, but I think what you also see is that the amount of lending is rising much more sharply than the transactions”, he added.