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Consumer Home
Consumer Home
21 April 2006
The record soar in mortgage lending is down to house buyer psychology, claims an expert.
The Council of Mortgage Lenders this week proclaimed March another record month for lending, with gross mortgage lending reaching £28.3 billion.
Around 34 per cent higher than the £21.2 billion lent in the same period last year, the sum was the highest March lending figure on record.
Seasonal factors alone could not account for the increase of 26 per cent from the previous month's figure, with lending unusually strong throughout the normally quiet winter period.
Drew Wotherspoon of mortgage experts John Charcol believes that the soar in lending was down to increased confidence of consumers.
"The first half of 2005 was poor for house sales yet, as consumers realised that the much-threatened house price crash was just a continued myth, they began to speak with returning feet," he said.
"This momentum has carried through into 2006 and I expect to see good figures for some time yet. At times like this it pays to remember the psychology of house buyers over and above the economic situation, they are taking their confidence from those around them."
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