Mortgage lending rise

Bank of England recent statistics show that mortgage lending figures have increased in February 2007.

According to the Bank of England, mortgage lending rose by £10.2 billion in Feb 07, which was higher than the forecasted £9.4 billion.

Chief economist at Deutsche Bank, George Buckley, stated "Despite weak income growth, high debt levels and increasing household borrowing rates, consumers continue to spend."

The last 3 interest rate rises appear to have had little impact on the housing market and has led some commentators that there may be another point rise due within the next few months that would then hopefully take the heat out of the mortgage/ house market.

The above facts do appear to grate with the recent Nationwide stats that suggested house inflation to be slowing to 9.3% from 10.2% in the previous month.