Gross lending reached a new May record of £30.6bn data from the Council of Mortgage Lenders reveals.
The figure is up by 12% on April’s lending total of £27.4 billion and is 5% higher than the same month in 2006 when lending hit £29bn,
However, the CML says the rate of year-on-year growth is not as high as the market has seen in the first four months of the year – typically around 12% to 15%.
Michael Coogan, director general of the CML, says: “While today’s lending figure is a new record for the month of May, it does indicate that the market is slowing down following the rapid and sustained growth we saw last year.
“Going forward we expect lending to ease as we progress through the year, but the market will remain in good shape.
“Although further interest rate rises will continue to dampen demand, we are still on course to meet our prediction of a record £360bn of lending during 2007.”