Gross mortgage lending hit a new September record of £29.5 billion, according to the latest data from the Council of Mortgage Lenders (CML). Lending was down by 11% on the all-time record reached in August of £33 billion, but up by 7% on September last year (£27.6 billion).
Typically we expect to see lending slow in September before picking up later in the autumn - as the summer holidays come to an end, and house hunting increases.
Commenting on the data, CML Director General Michael Coogan said: "Housing demand and mortgage approvals in May and June this year were particularly strong and this supported the record levels of lending during the summer months. The lower levels of lending in September must be seen against this backdrop. House price growth and mortgage approvals continue to remain strong, so we should expect to see continued levels of robust lending over the coming months. But with financial markets now expecting a further interest rate rise, we anticipate a slow down in house sales and mortgage approvals as we move into 2007."
