22 Jan

Gross mortgage lending hits new high

Gross mortgage lending hits new high

Gross mortgage lending hit record levels last year, according to data from the Council of Mortgage Lenders (CML).

The CML's data shows that the value of mortgage loans hit £362 billion, up from £345 billion during 2006.

Yet, the final months of the year saw a downturn of 25 per cent taking gross lending during the month to £22.6 billion.

This was the lowest figure recorded since May 2005.

According to Michael Coogan, director general of the CML, this can be attributed to the effect of the credit crunch.

However, with up to three cuts in the base rate of interest due this year, the housing market is set to recover shortly, he added.

"Overall, despite the funding constraints caused by global conditions, the UK mortgage marketplace remains highly competitive and there will continue to be a range of good deals available to better risk borrowers," Mr Coogan explained.


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