Mortgages Peak During May

21/06/2007

The Council of Mortgage Lenders revealed that £30.6bn worth of mortgages were undertaken during May, this an 12 per cent rise compared with May 2006.

Michael Coogan, CML director said: 'While today's lending figure is a new record for the month of May, it does indicate that the market is slowing down following the rapid and sustained growth we saw last year.

Director of statistics David Dooks, at the BBA, commented: 'The recent trend in mortgage lending has been downward, so the stronger demand in May was somewhat surprising, particularly as it was before the anticipated introduction of Home Information Packs, which encouraged people to put their properties on to the market in May and will tend to boost lending in June and July.'

Many building societies came across a steady start during summer with new lending dropping by 17 per cent compared to 2006, leaving advances during May slipping to £1.25bn.

Adrian Coles, Director-General of the BSA said: 'another rate rise would add to the slowdown later in the year and into 2008. However, a reasonably strong economic outlook, especially continuing robust employment, should provide support to lending and property prices.'

Free Mortgage Enquiry