Lending boom: Balifs may reap a bitter harvest

1.19.15pm GMT Thu 20th Nov 2003

Responding to Building Society figures which show lending has tripled over the past year and Bank figures showing mortgage lending for October at a record £6.1bn, Malcolm Bruce MP, Liberal Democrat Shadow DTI Secretary, said: "These disturbing lending figures show how seriously people are exposing themselves to further rises in interest rates.

"Much of this lending is underpinning the consumer and housing boom, and with manufacturing still in recession, the Bank of England now has a serious problem.

"All this money will have to be paid back. While retailers may see a Christmas bonanza, if rates rise further, it will not be long before those borrowing at the edge of there means will find themselves in repayment difficulties.

"If this runaway lending continues, and unsustainable personal debt keeps growing, the bailiffs are set to reap a bitter harvest."