Mortgage lending ‘highest on record’, says CML

Posted on 19 July 2007

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Mortgage lending has reached a record high, according to one industry body.

The Council of Mortgage Lenders (CML) says that gross lending reached £34.2 billion in June, up from £31.4 billion in May.

The figures contrast with those released earlier today by the Building Societies Association (BSA), which suggest that higher interest rates have led to a slowdown in lending. However, the CML explains that the rise is largely seasonal.

Although lending in June was up by 9% on May, it says, this was a lower monthly increase for June than in each of the last two years (12% in 2006 and 15% in 2005).

CML director general Michael Coogan said: “Despite the record level of mortgage lending, there are signs that the market is feeling the cumulative effects of the five interest rate rises we have seen over the past year.

“This effect will become much more evident in the coming months as borrowers with fixed-rate mortgages come off their existing deal into a significantly higher interest rate environment.”


Category: Mortgages

 

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