5 Jan

Bank of England reports increase in net lending

Bank of England reports increase in net lending

The Bank of England revealed that net lending secured on dwellings increased by £1.5 billion in November, compared with a £1.1 billion rise the previous month.

England's national financial institution said that the 12-month growth rate remained unchanged at 0.9 per cent.

The Royal Institution of Chartered Surveyors (RICS) commented that the research demonstrates the "increasing momentum" in the UK property sector.

Oliver Gilmartin, RICS senior economist, said: "[These] figures support our view that increasing momentum in the housing market will see further rises in house prices in 2010."

He added that the Bank of England's statistics suggest an improvement in lending conditions in the country.

However, Mr Gilmartin urged borrowers to be cautious when seeking out new deals. He explained that a upturn in the property market coupled with more favourable economic conditions will result in rises in the base rate of interest.

Mr Gilmartin noted that, because the base rate is currently so low, any increase will have a greater proportional impact on monthly mortgage payments.ADNFCR-1222-ID-19541006-ADNFCR

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