Mortgage lending at record high

18 January 2007

New figures show that mortgage lending hit record levels for the month of December 2006.  According to the Council of Mortgage Lenders, homebuyers borrowed £29.4 billion from banks, building societies and specialist firms.

This figure compares with £33.1 billion in November, and is 8.8% higher than December 2005. 

The Council of Mortgage Lenders is predicting that high prices and the demand for homes will continue.  It estimates that mortgage lending this year will top the £346 billion that was borrowed in 2006.

However, the Council of Mortgage Lenders added that the recent interest rate increase may deter some would-be homeowners from getting onto the property ladder.

The latest report from the Royal Institution of Chartered Surveyors said that the housing market was now starting to cool down, largely as a result of the interest rate rises imposed at the end of last year.