Mortgage lending reaches new high

The Council of Mortgage Lenders (CML) has revealed that mortgage lending reached a new high last month, with the gross figure now standing at £34.2 billion.

This represents a nine per cent increase on the £31.4 billion lent in May, the CML noted, though the organisation was keen to emphasis that the mix of transactions could change as more borrowers see their fixed-rate deals end.

Higher levels of remortgaging could consequently be witnessed, though overall figures are nonetheless expected to remain healthy.

The British Bankers' Association has also recorded an increase in net mortgage lending for June, up £5.1 billion over the month, though such an increase was below the long-term average.

"With less than 50 per cent of the increase in base rates over the past year being passed onto mortgage borrowers (via the effective mortgage rate) it is not surprising that mortgage lending has remained so strong during the seasonally strong summer months," advised Oliver Gilmartin, senior economist at the Royal Institution of Chartered Surveyors.


© Adfero Ltd