Mortgage lending rose to a record level in May with £30.6 billion lent to homebuyers, the Council of Mortgage Lenders (CML) has announced.
The figure is five per cent higher than in May 2006 and 12 per cent higher than the previous month, indicating that net borrowing continues to rise year-on-year and month by month.
But the rate of year-on-year growth is demonstrably slowing off, CML director general Michael Coogan remarked.
"Today's lending figure … does indicate that the market is slowing down following the rapid and sustained growth we saw last year," he commented.
He anticipated that lending would ease further as the year progressed, with at least one more probable rate rise anticipated by most financial commentators.
Meanwhile, the Building Societies Association (BSA) confirmed that summer lending had got off to a slow start, with only very slight growth in gross lending compared to May 2006 at £4,363 million compared to £4,613 million last year.
Rate rises since August 2006 have fed the slowdown, the BSA affirmed.
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