Mortgage lending growth 'is still happening'

Growth in the UK mortgage lending industry is still happening despite the credit crunch, according to the editor of advice website Your Mortgage.

Pauline McCallion has stated that while the industry is growing, it is at a slower rate than usual.

She went on to explain that the main difference in the current market to previous years is that remortgaging is dominating the sector, with "the bulk" of lending set to take place within that sphere.

The expert added that it is "quite difficult to say" what the future hopes for the industry at this time.

"We''re looking at the availability of funding to banks and building societies for mortgage lending," she said.

"That plays a big part in what they can lend to consumers and that is why they are being quite picky at the moment about how much they lend and who they are prepared to lend to."

Research by the Financial Services Authority found that around 1.4 million people are expected to come off low-cost fixed rate mortgage deals this year.

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