CML sees rise in gross mortgage lending

23-Apr-2007

Mortgage lending in March reached its highest figure ever this year as first time buyers and remortgage customers struggled to respond to the housing affordability challenge, new figures from the Council of Mortgage Lenders (CML) show.

As housing prices continued to rise against a background of three successive interest rate rises in August, November and January, first time buyers and others borrowed £25.5 billion in March alone.

This figure was 22 per cent more than was borrowed in the UK in February, and ten per cent more than the sum taken out by homebuyers in March 2006.

Unveiling the figures, CML director general Michael Coogan remarked that he would expect mortgage lending over 2007 to mirror the record high seen last month, predicting a record £360 billion in annual borrowing.

But the prospect of higher interest rates later this spring or early in the summer would be likely to "take its toll on demand" for mortgages, he added.

According to the CML, there are now 11.6 million mortgages in the UK and the total value of loans is over £1 trillion.

To find out about those mortgages specifically aimed at first time buyers, see our best buys for first time buyers table.

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