Credit crunch fails to prevent record year for mortgage lending

Published: May 07, 2008

The effects of the credit crunch on the mortgage market may have been over-exaggerated, it has been revealed, as recently released data from the Council of Mortgage Lenders shows mortgage lending in 2007 still exceeded that of 2006.

The CML's annual report shows that six of the first seven months of the year were characterised by record lending figures.

What's more, lending still totalled a record £364 billion in 2007 - up six per cent on the £345 billion seen in 2006.

It was also noted that by the end of last year 12 million households were using the best mortgage deals to finance the purchase of their own property.

As a result, it appears that home-ownership remains the tenure of choice for people in the UK, with 70 per cent of the population now owner-occupiers.

The Council of Mortgage Lenders is an industry body representing mortgage lenders in the UK, and includes banks, building societies and specialist lenders.

In its fortnightly update, the body welcomed the efforts of the Bank of England to encourage greater liquidity in the financial markets.

It is hoped this will ensure the best mortgage deals remain on the market.