Tuesday, October 17, 2006
Category:
Finance News
With new figures from the British Bankers' Association (BBA) showing that £18.2 billion was lent for mortgage purposes in May, many people may choose to take out a competitively priced home owner loan to assist with their property improvements or other financial needs.
The mortgage lending rise represents a 27 per cent annual increase with the seasonally adjusted net mortgage lending figure rising by £5.7 billion.
David Dooks, BBA director of statistics, said: "Although numbers of approvals are still well below the levels of early 2004, the record level of gross lending and stronger net lending in May shows mortgage market activity to be healthy."
The figures also found an 133 per cent increase on April's figures and discovered a £0.7 billion rise in the level of lending for overdraft and loans in May.
Recent figures from the Council of Mortgage Lenders (CML) supported the BBA positive lending figures also. The CML May lending figures found gross mortgage lending had reached £28.7 billion, which represents a year-on-year increase of 30 per cent.
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homeowner loan with a competitive rate could give consumers a wealth of options whether it be improving their property by adding extra bedrooms, a conservatory, new kitchen or bathroom. By using a homeowner loan to improve their current property, homeowners might find that they could even add value to their house. A homeowner loan could also be used to consolidate existing debts. It should however be remembered that repaying borrowing over a longer term increases overall interest charges.
