February mortgage lending breaks records

Mortgage lending has continued to break records, with a record £21.8 billion approved during February, the Council of Mortgage Lenders (CML) has revealed today.

The figure was nonetheless five per cent down on the bumper £23 billion borrowed in January. February is traditionally the slowest month of the year for mortgage borrowing.

Analysts have said that the figure – which makes February the fourth record breaking month in a row – can now fairly certainly be said to signify an ongoing trend.

“Confidence in the housing market is strong and demand has returned to the levels we witnessed two years ago,” said CML director general Michael Coogan.

“Areas which saw sluggish activity over the past couple of years such as London and the south-east are now seeing a clear strengthening in house prices.

“House-buying activity and mortgage lending looks set to remain well supported over the coming year. The economy is in good shape and interest rates look stable.”

The mortgage market has been fuelled as much by remortgaging as by new approvals, with a large number of people in the market looking for the best mortgage rate.

© Adfero Ltd

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