Mortgage lending near record levels

Mortgage lending rose 30 per cent in May compared to the same period of the 2005, new figures have shown.

The new highs are a record for May lending, said figures published by the Council of Mortgage Lenders (CML) and the Building Societies Association (BSA).

The figure was also an 18 per cent increase compared to April and only just fell short of the all-time record for mortgage lending.

“The recent lending market has been consistently strong,” said director general of the CMA Michael Coogan.

“Lending has hit record levels in six of the last eight months on the strength of the London market, interest in higher priced properties, and strong consumer confidence.”

The increase in lending has come against a resurgence of house price growth, with affordability being countered by competition keeping the best mortgage rates low.

The booming market is predicted to slow down later this year however, said Mr Coogan.

“We expect demand to moderate later this year, but it looks set to stay robust for the immediate future – although property viewings might be affected by World Cup fever.”

© Adfero Ltd

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