The Net Mortgage Lending Index is calculated on the basis of statistical data of the British Bank Association (BBA).
The dynamics of mortgage lending amounts depends directly on the value of credit, which is regulated by an interest rate. Excessively quick growth rate in mortgage lending sector can lead to some considerable demand for estate property which stimulates the increase in dwelling prices.
In order to prevent some “overheating” of the market, the English Bank can raise an interest rate, and at the same time it decreases price pressure in real estate sector. The raise of current index has some influence on the market and is positively perceived for the British pound.
