UK mortgage lending reached record heights

Posted: 20 Sep 2006 10:54:29 GMT

The CML reports that mortgage lending in Britain soared last month to a record high.

Mortgage lending in Britain soared last month to a record high of £32.7 billion, new figures reveal.

The Council of Mortgage Lenders (CML) reports that gross mortgage lending in the UK rose by 7.2 per cent between July and August, with mortgage lending last month 21 per cent higher than in August 2005.

The report reveals that last month's total was the tenth monthly lending record over the past 12 months, with the London market remaining strong.

Michael Coogan, CML director general, said: "In the coming months we expect to see a very similar picture, as demand remains strong and house prices continue to rise."

However, Mr Coogan warned that the Bank of England is expected to raise interest rates again by the end of the year, from the current rate of 4.75 per cent. He forecast moderation of house price growth and demand, ensuring that the market remains sustainable and "robust".

The CML's members account for around 98 per cent of all UK residential mortgage lending and the organisation estimates that there are 11.6 million mortgages nationwide, with total loans worth more than £1 trillion.

The British Bankers' Association (BBA) has reported that mortgage lending remained very strong last month, with net mortgage lending up by an underlying £6.2 billion, £0.4 billion higher than the £5.8 billion rise recorded in July.

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