RICS: BBA mortgage lending data

Commenting on the BBA mortgage lending data, Simon Rubinsohn, RICS chief economist said: "The modest pick up in mortgage lending in February reflected in BBA data released today is unlikely to be sustained. Buyer enquiries (according to the latest RICS survey) have slipped back to the lows seen in the wake of the Northern Rock crisis and this trend is likely to persist through the spring. The recent sharp rise in Libor rates is indicative of the reluctance of banks to lend to each other and suggests that mortgage finance will remain in short supply for some time to come.

"Re-mortgaging levels still remain strong which in part reflects the ending of a large number of fixed rate mortgage deals. However, with lenders scaling back on loan to value ratios we expect a further drop in mortgage equity withdrawal over the coming months. This is likely to hit homeowners looking for cheaper sources of credit to finance big ticket purchases."