RICS comment on CML July mortgage lending

Commenting on CML gross mortgage lending figures, Simon Rubinsohn, RICS chief economist said: "While the housing market still remains resilient, the turmoil in financial markets will push up mortgage costs for in vogue longer term fixed rate deals and will further slow the residential property market. With 90% of borrowers opting for fixed rate security, those who are already financially stretched will find themselves paying a higher price for the added peace of mind. There is already evidence that lenders are becoming more discriminating in advancing loans to borrowers and this could be compounded by possible job losses in the City if the volatility persists. The potential for lower bonuses in the financial services industry could also cast a pall over the property market slowing price gains from their recent rapid pace."