Gross lending hit a new monthly record in October reaching £30.3bn, according to the latest data from the Council of Mortgage Lenders (CML).
Lending was up by 4% on the September figure of £29.2bn, but down by 8% from the overall record of £33bn in August. Lending was also up 12% in comparison to the £27bn lent in October last year.
The CML says the pick up in mortgage lending was in line with trend. The end of the summer holidays usually sees a pick-up in house hunting and follows continued strength in mortgage approvals.
CML director general. Michael Coogan, says: "For yet another month the housing market is proving itself to be in robust shape. Housing demand and mortgage approvals have been strong over recent months, despite the rise in interest rates. House price growth is also strong, so we expect to see lending remaining at high levels through the new year.
"But with interest rates rising for the second time in three months, we anticipate a modest slow down in house sales and mortgage approvals as 2007 progresses."
Meanwhile the British Banker’s Association (BBA) says net mortgage lending rose by an underlying £5.5bn. This was between the £5.4bn rise in September and the monthly average of £5.6bn over the previous six months.
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