Gross mortgage lending reached a new record level of £32.2b in June, according to figures released by the Council of Mortgage Lenders (CML). This is up from £25.7b last June, and is higher than the previous monthly record of £29.1b this May.
Lending generally increases in June, following greater house buying activity in the spring, 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."
