Record February mortgage lending

Posted: 21 Mar 2007 11:35:04 GMT

The UK property market appeared to remain healthy in February, with recently released mortgage lending figures showing record levels.

The UK property market appeared to remain healthy in February, with recently released mortgage lending figures showing record levels.

According to figures from the Building Societies Association (BSA), last month saw the highest level of lending for any February on record, with gross annual advances totalling £421.4 billion - up more than £100 billion from 2006.

Council of Mortgage Lenders (CML) data, despite showing a seven per cent decrease from January, records £22.5 billion gross mortgage lending.

Michael Coogan of the CML said: "This is the highest February lending figure on record, and reflects the continuing strength of the market and the strong desire of many people to get a foot on the property ladder or move house.

"Recent speculation about whether or not interest rates will go up seems to have had little impact upon lending levels and we still expect gross lending to reach around £360 billion this year."

Adrian Coles of the BSA suggested, however, that "we may be seeing the peak of the market" and that interest rate rises will work their way through to the mortgage market.


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