Mortgage lending reaches record levels in March

Gross mortgage lending reached record levels in March, according to an industry body.

The Council of Mortgage Lenders, which represents around 90 per cent of mortgage lenders, revealed that mortgage lending topped £31 billion last month.

Lending was 22 per cent higher than in February, when just over £25 billion went out in secured lending.

And the figure for March 2007 is ten per cent higher than for the same month last year, when £28.3 billion was lent out.

Michael Coogan, director of the CML, said it is “clear that many borrowers are taking sensible steps to shelter against higher mortgage costs.”

And he predicted that mortgage lending would reach £360 billion – a record level for one year – in 2007.

However, in a word of caution for the industry, he said there is “a question mark” over the next few months, following news that inflation topped three per cent in March.

This is because many analysts are predicting the interest rate to be raised next month, with potential knock-on effects for mortgage lending.

© Adfero Ltd

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