Mortgage lending breaks all records

Overall mortgage lending reached new record highs during June, hitting £32.2 billion, the Council of Mortgage Lenders (CML) has announced.

This was an increase on the previous record of £29.1 billion achieved during May and is up from £25.7 billion last in June 2005.

June is historically one of the peak month for mortgage activity and the 11 per cent month-month was largely in line with previous May increases.

“Record levels of lending have been achieved in nine of the past twelve months,” said CML director general Michael coogan.

“Today’s figure reflects the seasonal rise in house buying, strong house price growth and high levels of remortgaging activity.

“The strength of the London market is also a factor, with property prices and mortgages substantially higher than in other parts of the UK.

“The level of mortgage approvals shows that demand for houses and remortgages remains strong, so we expect to see continued robust lending during summer.”

The CML warned that faster-than-expected house-price inflation, rising energy prices and increased lending could all add fuel to inflation and trigger a rate rise.

Any increases in the best mortgage rate available to borrowers could jeopardise affordability and further house price growth, it added.

© Adfero Ltd

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