Strongest August since 2008 for lenders
Mortgage lenders have reported their strongest August since 2008 with an estimated total of £18.6bn handed out to borrowers. But as it released the figures, the Council of Mortgage Lenders (CML) said lending activity appears to have reached a "plateau" and it could fall back in the coming months as borrowers' appetites start to wane amid stricter lending rules and signs that the London market is softening.
August's lending total is 5% lower than the overall value of loans advanced in July, which at £19.7bn was the highest figure seen for any month since July 2008. But last month's £18.6bn total is still 13% above that for August last year. It is also the second highest monthly lending total recorded this year so far, with July being the highest.
The CML said last month's lending figure was "the highest lending total for an August since 2008," when £19.3bn worth of loans were handed out.
The lending body recently revised its lending prediction for the whole of this year upwards, in the light of stronger than expected activity at the start of this year.