Tuesday, April 24, 2007
B&B see falling demand for mortgages as fear that rates could reach 7.5%
Rising interest rates are causing demand for mortgages to slow, according to high-street lender Bradford & Bingley. The building society said that mortgage approvals for house purchases have fallen back from their recent peak, although it added that the slowdown in demand was modest. Steven Crawshaw, group chief executive of Bradford & Bingley, said "with the economy remaining healthy and the fundamentals which support the housing market still very sound, mortgage lending is expected to remain at high levels." His comments come after a group of leading economists warned that interest rates, currently at 5.25pc, might need to rise to 7.5pc over the next two years if inflation is to be slowed.