May sees strong mortgage lending

21 June 2006
Over the course of last month mortgage lending increased in value by 18 per cent to top the highest value ever recorded for the month of May.

Figures from the Council of Mortgage Lenders (CML), the Building Societies Association (BSA) and the British Bankers' Association (BBA) all suggest that mortgage lending in Britain is growing in strength.

The CML data revealed that the amount lend in mortgages in May 2006 was £28.7 billion, an increase of some 30 per cent on the same period of the year before.

Director general of CML Michael Coogan said: "The recent lending market has been consistently strong. Lending has hit record levels in six of the last eight months supported by the strength of the London market, interest in higher priced properties, and strong consumer confidence."

Research by the BBA also found that new mortgage lending increased by £5.7 billion. Director of statistics at the association David Dooks said: "May's rise in net mortgage lending, the largest monthly increase since the rise of £6 billion in April two years ago, shows the mortgage market to be very much alive at a time when annual house price growth is strengthening."

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