Mortgage lending in UK soars to new high

Rising house prices and a boom in demand during the early summer pushed mortgage lending in the UK to another record high today.

The Council of Mortgage Lenders (CML) said gross mortgage lending reached £32.7bn (€48.6bn) in August, up from £30bn (€44.6bn) in July and the 10th monthly record in the past year.

The organisation, which represents 98% of all residential mortgage lending in the UK, said it expected a similar picture in the coming months, as demand remains strong and house prices continue to rise.

However, it predicted that the prospect of a rise in interest rates over the next few months would eventually cause demand to moderate.