A new record for gross mortgage lending was set in June, according to figures released today.
Property buyers and owners borrowed a gross total of £34.2 billion last month, the Council of Mortgage Lenders has revealed.
Although this is a nine per cent increase on the £31.4 billion lent out in May, it is still a lower increase than was recorded in 2006 (12 per cent) and 2005 (16 per cent).
CML director general Michael Coogan feels the figures are indicative of a slowdown in the housing market.
He ascribed this to the effects of the five recent interest rate rises finally filtering through to consumers.
“This effect will become much more evident in the coming months as borrowers with fixed-rate mortgages come off their existing deal into a significantly higher interest rate environment,” he commented.
Mr Coogan also believes that the UK should brace itself for “one more interest rate rise before the end of the year”.
However, the CML is advising the Bank of England to carefully assess the impact of previous interest rate rises before implementing a further one.
The Bank of England monetary policy committee meets on the first Thursday of every month to discuss whether to increase the base rate.
© Adfero Ltd