Mortgages 'record high, but slowing down'

Mortgage lending has reached record breaking levels for March, an industry body has announced.

The Council of Mortgage Lenders (CML) has reported that gross mortgage lending for March was at £31.3 billion, the highest ever figure for the month of March.

According to the CML, whose members account for 98 per cent of all residential mortgage lending in the UK, mortgage borrowing this March was ten per cent higher than March last year, and also 22 per cent higher than February.

CML director general Michael Coogan said that, despite the highest ever March, it was still possible that interest rates rises would see the market slow down.

David Dooks, director of statistics for the British Bankers Association (BBA), echoed those feelings and noted that the effects of the potential interest rises were being felt in lending overall.

He said: "With no short-term prospect of costs reducing, mortgage lending growth should ease further in the months ahead. Higher mortgage costs for households are no doubt a factor in the subdued demand for unsecured borrowing."

Figures released by the BBA showed that consumer credit fell by £164 million overall with credit card lending decreasing by £117 million.