RICS comment on CML mortgage lending data

Commenting on the CML mortgage lending data, RICS senior economist, Oliver Gilmartin said: “With less than 50% of the increase in base rates over the past year being passed onto mortgage borrowers (via the effective mortgage rate) it is not surprising that mortgage lending has remained so strong during the seasonally strong summer months. Record borrowing levels will only add to the concerns at the Bank of England that higher interest rates will be necessary to curb consumers appetite for debt.

“However, the continuing rise in longer term borrowing costs means that fixed rate mortgage deals are becoming increasingly costly and this will start to have a more material impact on borrowers as we move into the winter. Even so, the strength of the employment picture will remain a key support for the housing market.”