Mortgage lending rises slowly

Mortgage lending could well be on the up as last month the figures took a strong rise. The Bank of England has said that this is a strong indication that the housing market is now gaining strength.

In January, the value for new home loans was at £9.5 billion and that figure rose to £10.2bn in February. Market expectations for new mortgages were higher than expected as they came in at 119,000 for last month. Even though this is a good sign for the housing market, experts are still worried that this could slow down later this year because more interest rates are expected in the second part of 2007.