UK mortgage lending reaches new record

Mortgage lending in Britain reached another new record in July as the number of people borrowing money to buy a home picked up…

Mortgage lending in Britain reached another new record in July as the number of people borrowing money to buy a home picked up.

A total of £25 billion was advanced during the month, 12% more than during June, which was also a new high, according to the Council of Mortgage Lenders.

There were also signs that first-time buyers were returning to the market, with their numbers increasing to nearly 35,000 from 30,000 the previous month, although they still accounted for only 30% of all loans.

Lending for house purchase was £11.6 billion, 20% higher than in June and the highest figure since August last year.

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Remortgaging also remained strong during July at £10.7 billion, which was the second highest monthly figure ever.

Michael Coogan, CML director general, said: "July's figures support the picture of a housing market that remains stronger than expected.

"The apparent increase in first-time buyers in July is welcome, as their numbers have been seriously depleted in recent months."

PA