Mortgage lending highest ever for July

Gross mortgage lending reached 30.4bn in July, the highest ever figure recorded for that month.

The figure was also the second highest figure on record says the Council of Mortgage Lenders.

Lending in July was 6% below the 32.4bn of lending in June, but 19% higher than the 25.5bn of lending in the same month last year.

Michael Coogan, director general at the CML says: “Another month, another record lending figure. Seasonal factors are continuing to support housing transactions and house price growth. Bank of England approvals data shows that there is a strong appetite among borrowers for remortgages and other types of loan.

“But the timing of the Monetary Policy Committee’s interest rate rise a fortnight ago caught some people by surprise, and its effect is not reflected in today’s figures. So, with financial markets suggesting the possibility of at least one more rate rise before the end of the year, we expect to see more subdued lending over the coming months.”