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CML reports increase in UK mortgages

Date: Fri, 23 Sep 2005

UK mortgage lending has hit a purple patch, rising to its highest level since July 2004, according to new figures.

Statistics from the Council of Mortgage Lenders (CML) show that gross mortgage lending increased in August by nine per cent to £27.5 billion, up by four per cent on the figure of £26.5 billion for August 2004.

CML figures show this rise is largely the result of an increase in remortgaging, which rose by 15 per cent to £11.7 billion, to reach its highest level since October 2003.

"This probably reflects borrowers taking advantage of lower interest rates and remortgaging into cheaper deals, especially as a large number of people will have been coming to the end of their previous deals," CML explained.

Lending for house purchase also increased by six per cent to £12.5 billion this August, although this is still slightly down on figures for August 2004.

CML director general Michael Coogan said that the market is now showing signs of stabilising, predicting "a moderate market for the foreseeable future".

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