News: Mortgage lending rebounds into record level

Gross lending hit a new monthly record in October of £30.3 billion, according to data released today from the Council of Mortgage Lenders.

Lending was up by 4% on the September figure of £29.2 billion, but down by 8% from the overall record of £33 billion in August. Lending was up 12% in comparison to October last year (£27 billion).

The rebound in lending - following a slowdown in September - is not surprising as the end of the summer holidays usually sees a pick-up in house hunting and follows continued strength in mortgage approvals.

Commenting on today's data, CML director general Michael Coogan said: "For yet another month the housing market is proving itself to be in robust shape. Housing demand and mortgage approvals have been strong over recent months, despite the rise in interest rates. House price growth is also strong, so we expect to see lending remaining at high levels through the new year.

"But with interest rates rising for the second time in three months, we anticipate a modest slow down in house sales and mortgage approvals as 2007 progresses." 


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