Lending For Mortgages Hits 7 Year High
The Council of Mortgage Lenders has released figures that show that mortgage lending in July was at the highest point that it has been since 2008.
It is estimated that borrowers took out loans totalling a sum of £22bn in July, more than it has been since July 2008.
The CML stated that lending for mortgages this year was probably going to go as high as £209bn - representing a 3% rise on last year's total.
It is also predicting that lending will rise even more in the second six months of the year - describing the first half as having "subdued activity".
CML economist Mohammed Jamei said:
"We expect lending activity in the rest of the year to be underpinned by improving economic fundamentals, but kept in check as any upward pressure on house prices further stretches affordability for some buyers."
There is a correlation between the amount of money lent and the level of house prices because of people needing larger loans in order to pay for them.
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