February mortgages set record for month
The amount of money lent out for mortgages in February set a new record, according to the Council of Mortgage Lenders on Tuesday. The amount borrowed was at £24.6 billion, a new record for February and 9 percent more than was borrowed in the same month last year. The CML said that the record figure showed that the housing market remains strong. Still, the CML figures showed that lending was 7 percent lower than January, when £26.6 billion was lent.
In a separate report, the Building Societies Association said that building societies lent out a record £4.2 billion in February, £1 billion more than they lent last February on mortgages. Further, mortgage loans approved but not yet made also set a record for the month. The director general of the BSA, Adrian Coles, said however that it is possible that the housing market has peaked. With the full effect of recent interest rate hikes still not being felt, lending for mortgages could become “more subdued”, he said. However, Mr. Coles also said that there will still be a demand for mortgages, “just not at record highs.”