Highest UK Mortgage Lending

2007 saw another record year for UK Mortgage lending. The Council of Mortgage Lenders (CML) show that banks lent a total of £362 billion in 2007, this is unsurprising given the increase in house prices, which has necessitated more expensive mortgages.

However, whether 2008, will see a record year is uncertain. With house prices falling at the end of 2007, and the global credit crunch making mortgages more difficult to secure, 2008 may see a fall in mortgage lending or at least very slow growth.

Despite a consensus showing monthly house price falls, there is also evidence of increased activity in the housing market. Rightmove suggest that many homeowners have been galvanised by falling prices making house prices appear more affordable (link Times article)

There is also evidence that the November and December house price falls may have been due to the rush to get properties on the market before the compulsory introduction of HIPS on the 14th December.

According to Rightmove house prices fell in the 5 weeks upto January 15th by 0.8% to £230428.