Record high for mortgage lending

Mortgage lending in the UK has hit a new record high.

09:55 20 August 2004

July witnessed a sharp rise in mortgage lending, according to figures from the Council of Mortgage Lenders (CML).

The figures show that all lending - including remortgaging - rose by 29.2 billion last month.

This was up from June's 28.2 billion and fuelled by a record 14.7 billion in loans for house purchases.

However, appetite amongst homeowners for remortgaging seems to be on the downturn.

In total, remortgaging accounted for only 39 per cent of all loan advances in July - this compares to 44 per cent in June.

The CML director general, Michael Coogan, said that the lending figures suggested "a strong seasonal revival in the house purchase market this spring".

However, he feels the full effects of recent interest rate rises had not yet fully impacted on lending figures, as the survey records loans made at the completion of a house purchase.

"Estate agents are continuing to report a slowdown in current activity in their offices, but this will not be reflected in lending figures for a few months," Mr Coogan said.

Mr Coogan's argument seems to be supported by the latest house price survey from property website Rightmove, which found asking prices fell by two per cent in the five weeks to August 14th.