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Increased numbers of UK mortgages

Date: Wed, 21 Dec 2005

The number of UK mortgages sold in November has reached the second highest level on record.

The Council of Mortgage Lenders (CML) estimate that gross mortgage lending rose by five per cent last month to total £28.5 billion. This is the second highest monthly lending figure in history– just one per cent lower than the peak of July 2004, and 30 per cent less than lending levels in November 2004.

Traditionally, lending activity eases off towards the end of the year; however, the latest figures show that the UK mortgage market is undergoing a significant boost; the majority is coming from a growth in remortgaging as homeowners shop around for a better interest rate.

"The housing and mortgage markets have clearly strengthened significantly from the lows of a year ago," said CML director general Michael Coogan.

He added: "There have been upward trends in gross mortgage lending and approvals, and more stable house prices in recent months."

Mr Coogan also warned that affordability pressures will continue for many first-time buyers and some homeowners will resort to home improvements rather than moving over the next 12 months.


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