Adverse Mortgages UK

Mortgage lending set a new record for September as the growth in the UK property market accelerated, new figures have shown.

New figures from the Council of Mortgage Lenders (CML) have revealed that mortgage lending reached an all-time-high in the month of September as the UK property market continues to grow in value.

But while gross mortgage lending reached a record high of £29.5 billion for the month of September - some seven per cent higher than in 2005 - the total was still 11 per cent less than the value of mortgages taken out in August.

However, the CML explained that this reduction in mortgage lending relative to last month is largely seasonal, with lending traditionally slowing in September before picking up again in the coming months.

"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," Michael Coogan, director general of the CML, said.

"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."

However, Mr Coogan has forecast that this level of growth can not be sustained in the longer-term.

"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."


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