Building society mortgage gross lending hit a record high of nearly 53bn last year, reveals the Building Society Association.
Adrian Coles, director-general of the BSA, says: “Building society mortgage gross lending hit 52.8bn in 2006, which is the highest yearly figure on record.”
Coles says he is confident the mortgage market will continue to be robust during the start of the 2007 despite the interest rate rise.
And he is predicting a successful year for building societies.
He adds: “The strength of the housing market could have been one of the factors which influenced the Bank of England’s decision to put rates up last week to take the heat in the housing market down a few degrees.
“It is likely that the impact of interest rate rises will continue to feed through, dampening demand.
However, we predict building societies will still have a successful 2007.”