Mortgage lending hits record high

20 March 2007

Mortgage lending has hit a record high for the month of February.  According to the Council of Mortgage Lenders (CML), gross mortgage lending was £24.6 billion in February.  That’s 9% higher than for the same month last year. 

The CML says its figures were a record for any February, but were down by 7% on the £26.6 billion lent in January.  It says that the record borrowing reflects the continuing strength of the housing market and people’s desire to get onto the property ladder.

These figures from the Council of Mortgage Lenders are echoed by data from the Building Societies Association.  It says that mortgage loans approved but not yet made hit a record for the month of February of £5.4 billion. 

However, the director general of the Building Societies Association sounded a note of caution.  Adrian Coles said: “These are strong figures, but we may be seeing the peak of the market.  The recent interest rate rises are still to work through fully into the mortgage market.”