News: Mortgage lending record broken

Mortgage lending hit a new record level in June, surpassing the previous record set in May and reaching £32.2 billion, according to data released today from the Council of Mortgage Lenders.

June’s figures are also higher than this time last year (£25.7 billion)

Lending usually strengthens in June reflecting the pick-up in house buying activity in the spring months, and the 11% month-on-month rise was broadly in line with previous June increases.

Commenting on today's record figure, CML director general Michael Coogan said: "Record levels of lending have been achieved in nine of the past twelve months. 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 the summer months."

Coogan noted that with inflation running above the Bank of England's target, the risk of an interest rate rise seems more real than earlier in the year. "This may moderate lending and demand towards the end of the year," he said.

The Council of Mortgage Lenders is made up of banks, building societies and other lenders who together account for around 98% of all residential mortgage lending in the UK.

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