Relentless mortgage growth is headache for Bank

29-11-2006

Relentless mortgage growth is headache for Bank
The number and value of mortgages taken out in Britain rose to a three-year high during October, official data reveals, with rises in interest rates seemingly failing to cool the country's housing market.

Today's statistical release from the Bank of England (BoE) shows that the combined value of mortgages went up by £9.8 billion last month, the highest recorded since September 2003.

In addition, 128,000 home loans were taken out during October, which is itself also a three-year high.

Although these figures preceded this month's quarter of a percentage point rise in interest rates, the chance of further increases in December or the new year look more likely.

However, Howard Archer of analyst firm Global Insight suggested that the data may indicate "people were seeking to tie up mortgage deals before interest rates moved higher still".

"While the BoE has recently played down the role of house prices in its setting of interest rates, it will nevertheless be concerned about the market's current buoyancy," the chief UK and European economist added.

Today's official figures also revealed that the annual growth rate of consumer credit again fell in October, with overall credit card lending rising by £0.2 billion, compared to September's rise of £0.4 billion.


Bookmark with:
Bookmark with: Digg Digg Bookmark with: Del.icio.us Delicious Bookmark with: Reddit Reddit Bookmark with: StumbleUpon StumbleUpon Bookmark with: Google Google Bookmark with: Technorati Technorati Bookmark with: Netvouz Netvouz

Latest News:

Search News
News Front Page
Accountancy / Tax
Advertising / PR
Armed Forces
Automotive
Aviation / Aerospace
Banking / Finance
Charities / Voluntary
Childcare / Youth
Construction / Property
Customer Services
Education / Training / Teaching
Emergency Services
Engineering / Electronics
Entertainment / TV / Theatre
Graduate Roles
Health / Beauty
Hotel / Catering / Restaurants
HR / Recruitment
Insurance / Pensions
International / Overseas
IT / Internet
Legal
Management / Business
Manufacturing / Industry
Media / New Media / Creative
Medical / Healthcare
Pharmaceutical Industry
Public Sector
Retail / Wholesale
Sales / Purchasing / Marketing
Science / Technology
Secretarial / PA / Admin
Skilled / Semi-skilled Manual
Telecommunications
Transport / Logistics
Travel / Tourism / Leisure