Article: Mortgage lending slips GBP 1bn

THE first evidence that commonsense might have finally broken out among spend-happy UK consumers emerged yesterday. The Council of Mortgage Lenders said mortgage lending fell by GBP 1 billion in May, while separately the British Bankers Association said growth in unsecured lending was broadly flat last month.

Significantly, while the total amount advanced in May was 9 per cent higher than in May 2003, the amount borrowed by people remortgaging was 17 per cent down on this time last year.

This coupled with first-time buyer data suggests homeowners are gradually cutting back on borrowings. On average, first-time buyers in May borrowed 88 per cent of the value of their property, and their ...

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