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Mortgage lending hits fresh record

Mortgage lending hit a new record high in November, the latest figures from the Council of Mortgage Lenders (CML) show.

Total lending for home loans peaked at £33.1 per cent rise, following a monthly rise of nine per cent.

With record sums, mortgage borrowing in November was nearly 20 per cent greater than the same time last year, with growth fuelled by high house prices, attributed to demand for new properties outstripping supply.

The latest figures beat the previous record set in August, but both are notable for occurring in the same month as an interest rate rise, suggesting borrowers are undaunted by the Bank of England's decisions.

The Building Societies Association (BSA) said that the figures indicate that August's interest rate hike had "little effect on the demand for mortgages".

With the housing market in good shape, experts are predicting a healthy start to 2007.

Michael Coogan, director general of the CML, said: "Looking ahead, mortgage lending looks set to remain seasonally strong over the winter months, reflecting a continuing high level of transactions and house price growth.

"As for 2007 as a whole, we expect to see gross lending total around £360 billion - another record breaking year."

The Royal Institution of Chartered Surveyors (Rics) said that the latest figures are further evidence that the market will go into 2007 with "significant momentum".

Meanwhile, separate figures released by the British Bankers' Association show that net lending rose by an underlying £6.5 billion, up from £5.6 billion in October.

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21/12/2006 09:27:35

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