Mortgage lending soars

Posted: 22 May 2006 13:11:55 GMT

            Property News - Mortgage lending soars

Mortgage lending last month reached a record high for April, according to new figures.

A report by the Council of Mortgage Lenders (CML) indicates that mortgage lending hit £25.1 billion in April, 16 per cent up on 12 months previously, although down on March's totals.

CML's director general Michael Coogan claims that April's figures cap off what has been a strong few months for the industry.

"The record figures we have witnessed over the past six months illustrate that the market is in robust shape," he said.

However, he added that the soaring levels are unlikely to continue as many analysts are predicting a rise in interest rates over the coming months.

"If this happens, housing and mortgage market activity is likely to slow down from the recent high levels as the year progresses," he explained.

Last week the Bank of England's monetary policy committee (MPC) voted to keep interest rates at their current figure of 4.5 per cent for the next month.

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