Gross mortgage lending reaches record £19.1bn in July, CML says
The Council of Mortgage Lenders (CML) said on Wednesday the gross mortgage lending reached £19.1bn in July this year, the highest monthly figure since August 2008, when it reached £19.3bn.
In the previous month mortgage lending was at £17.9bn and in July of last year at £16.7bn.
Despite the recent cooling down in the housing market, mortgage activity remained strong.
CML's analyst, Caroline Offord, said: "Property transactions in the first half of the year showed a 25% increase compared to the same period a year ago but, as set out in our recent market forecast update, we expect that intensifying affordability pressures could start to dampen this upwards trend.
"Economic conditions have strengthened but while the Bank of England has signaled an improved economic outlook since May, headwinds remain and the message about future rate rises being measured and gradual remains unchanged."
The director of Legal & General Mortgage Club, Jeremy Duncombe, said: "Certainly from our recent conversations with lenders, they are confident they have the capacity and also the appetite to meet this extra demand.
"With confidence returning to the economy, we expect a new normal level for lending to be around £240bn to £250bn per year, with much of this coming from the intermediary channel as lenders' distribution models evolve."
JF