Will the mini mortgage bubble burst?

Sarah Coles
world record bubble
world record bubble

Gerald Penny/AP/Press Association Images

The last couple of months has brought some much-needed good news for the mortgage market. Just two weeks ago the Council of Mortgage Lenders was reporting that lending was 10% higher in January than the previous year, at £10.5 billion - it was the sixth month in a row of higher year-on-year lending. We have also seen a rash of new 90% and 95% mortgages, which all gave the market a general air of positivity.

However, a new report claims it's all a mirage, which is starting to shatter.