Mortgage Lending Increases
New figures from the Council of Mortgage Lenders have shown a slight increase in mortgage lending occurred in February. The announcement comes as good news for those in the housing industry, which has suffered recently due to buyer's inability to obtain credit.
Average loan to property value rates remain at a steady 80% from January, a higher value than this time last year. Figures also suggest a more frugal attitude to borrowing, with loan to income ratios falling to 3.11%, the lowest since August 2009.
The month also saw a 5% increase in the number of remortgages month on month and a 3% increase year on year. Remortgages are expected to increase further with anticipated interest rate rises later this year.
Chief economist of the Council of Mortgage Lenders Bob Panell, said: "The February fall in lending compared to last year was despite the fact that lending in the early months of 2010 was itself depressed following the end of the earlier stamp duty concession. But research suggests cash purchases have remained steady since the credit crunch, indicating that the housing market may be holding up better than the low mortgage lending levels suggest."
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