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February sees mortgage slowdown (UK)
Mortgage lending slowed in February, according to both the British Bankers' Association (BBA) and Council of Mortgage Lenders (CML).
Lending totalled £21.8bn in February down 5% on January, the CML said.
The BBA added that underlying mortgage lending, which excludes redemptions and repayments, rose by £4.4bn in February, compared to a £4.6bn rise in January.
But David Dooks, BBA spokesman, said that weaker lending in February does not signal a downturn in the housing market.
Confidence strong
The CML went further than the BBA and asserted that confidence in the housing market was strong.
The group pointed out that mortgage lending in February was 22% higher than for the same month last year.
"Areas which saw sluggish activity over the past couple of years such as London and the south east are now seeing a clear strengthening in house prices," Michael Coogan, CML director general, said.
"House-buying activity and mortgage lending looks set to remain well supported over the coming year," Mr Coogan added.
Meanwhile, unsecured lending rose by £0.7bn during February, the BBA said.
This is only marginally higher than the average of the previous six months of £0.6bn.
Borrowing on loans and overdrafts rose by £0.5bn, while on credit cards borrowing rose by £0.2bn during the month.
News date: 20 March 2006 - 16:03
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