CML announces record October lending

The Council of Mortgage Lenders (CML) has announced that gross lending hit record monthly levels in October, with a total of £30.3 billion being advanced in mortgages.

This is a four per cent increase on the £29.2 billion figure recorded in September but eight per cent down on the overall record of £33 billion that was seen in August.

On an annual basis, lending increased by 12 per cent from the £27 billion that was advanced in October 2005.

Despite the record levels measured last month, the CML said that the amount of lending that took place was "not surprising", owing to the traditional pick-up in demand that takes place at the end of the summer.

CML director general Michael Coogan said: "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."

However, as the market progresses through 2007, the CML predicts that a slight slowdown will occur as the November interest rate rise takes full effect.