Bradford & Bingley react to the CML lending figures

Duncan Pownall, mortgage development manager for Bradford & Bingley, said:

“This month’s figures are again encouraging. As gross lending increases to one of the highest monthly figures on record, £28.1billion, fears of a serious slump continue to subside.”

This recovery in mortgage lending has clearly been boosted by high levels of remortgaging as many borrowers on the cheap two-year fixed rates of 2003 rebroke their loans to avoid a jump in their monthly mortgage payments.

“However, it is not only homeowners remortgaging who are bolstering this month’s figures. Homemovers’ activity demonstrates increased confidence in the housing market as price growth stabilises.

Latest Hometrack figures indicate a 5.5% increase in buyer activity, whilst RICS report an increase in demand, albeit modest. Encouraging signs that the bottom will not fall out of the housing market and that lending figures will continue to gain strength.”