Wednesday, August 16, 2006
Category:
Finance News
New figures from the Council of Mortgage Lenders (CML) discovered that lending for property purchases in May reached a high of £28.7 billion.
This represents a 30 per cent increase compared to the same data for the previous year and is also just 0.5 per cent short of the record CML mortgage lending figure of £28.9 billion from July 2004.
Michael Coogan, CML Director General, said "The recent lending market has been consistently strong. Lending has hit record levels in six of the last eight months supported by the strength of the London market, interest in higher priced properties, and strong consumer confidence."
However, he added there were some factors – such as the World Cup fever sweeping the country – that may have an effect on lending figures.
"We expect demand to moderate later this year, but it looks set to stay robust for the immediate future - although property viewings might be affected by World Cup fever," Mr Coogan added.
Separate figures from the British Bankers' Association (BBA) have also reinforced the figures from CML of an increase in mortgage lending across the UK.
With such buoyancy in the market, many homeowners might be tempted to take out a competitively priced home owner loan as they plan their finances.
The BBA figures suggested that new mortgage lending figures increased by £5.7 billion in May, which is higher than the £5.1 billion average rise over recent months.
