The CML said gross lending figures were driven by house purchase loans which rose to a record £14.7 billion compared to £13.9 billion in June.
Remortgaging totalled £11.3 billion in July accounting for 39 per cent of advances. However in July last year remortgaging accounted for 44 per cent of gross advances. The CML said this provides further evidence of the current strength of lending for house purchase.
But Adrian Coles, director-general of the Building Societies Association (BSA), whose latest figures showed gross advances increased to £5.1 billion in July, said remortgaging remains a strong force in the market. “The approval figures indicate people are now looking to remortgage,” he said. “With interest rates rising, people may be starting to fix their mortgages in order to gain certainty on their repayments.”
Other CML figures revealed that during the first six months of 2004 around 11,200 equity release loans were made with a total value of around £517 million compared to 13,240 loans worth £597 million in the second half of 2003.
Mark King, managing director of Crown Equity Release, commented: “A large proportion of people are now looking at home reversion plans. As the market slows, this helps them retain equity in their property.”
