CML: Highest monthly lending ever

Thursday, 20, Jul 2006 12:00

Gross mortgage lending hit a new record level in June, reaching £32.2 billion, according to new data from the Council of Mortgage Lenders (CML). This is up from £25.7 billion last June, and is higher than the previous monthly record, set only in May, of £29.1 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.

"But with inflation 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."

Notes to editors

1. The Council of Mortgage Lenders' members are banks, building societies and other lenders who together undertake around 98% of all residential mortgage lending in the UK. There are 11.6 million mortgages in the UK, with loans worth over £1 trillion.

2. The next gross lending press release will be published on Friday 18 August, and will include data up to and including July 2006.

3. The next regulated mortgage survey (RMS) press release will be published on Tuesday 8 August and will provide a breakdown of lending by type.

Contact

Bernard Clarke - 020 7440 2226

Sue Anderson - 020 7440 2208

Christopher Dean - 020 7440 2262

Night / weekend calls only

Bernard Clarke - 07780 666581

Sue Anderson - 07979 658742

Christopher Dean - 07865 083029

CML PRESS OFFICE

Council of Mortgage Lenders, 3 Savile Row, London, W1S 3PB, tel: 020 7437 0075, www.cml.org.uk