Gross mortgage lending hits record levels in 2007

Gross mortgage lending hit record levels last year, with new figures revealing an above-estimate total of £362 million was lent over the course of 2007.

The statistics, published by the Council of Mortgage Lenders (CML), represent a five per cent increase compared to the previous year when lending totalled £372 million.

While mortgage lending over December fell by a greater-than-expected level, the director-general of the CML, Michael Coogan, claimed that the new figures offered plenty of optimism for the future.

"Looking forward, the recent decline in inter-bank lending rates and the prospect of further reductions in base rates in 2008 should provide some help to the market, although lending volumes are likely to remain weak for the next few months."

"Overall, despite the funding constraints caused by global conditions, the UK mortgage marketplace remains highly competitive and there will continue to be a range of good deals available to better-risk borrowers," he added.

A survey carried out last week by GE Home Lending Services indicated that 70 per cent of mortgage brokers expect the Bank of England to cut interest rates this year.

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