Lending in July was 6 per cent below the £32.4 billion of lending in June, but 19 per cent higher than the £25.5 billion of lending in the same month last year.
Commenting on the data, CML's director general, Michael Coogan, said: “Another month, another record lending figure. Seasonal factors are continuing to support housing transactions and buoy house price growth. Bank of England approvals data shows that there is a strong appetite among borrowers for remortgages and other types of loan.
"But the timing of the Monetary Policy Committee's interest rate rise a fortnight ago caught some people by surprise, and its effect is not reflected in CML’s figures. So, with financial markets suggesting the possibility of at least one more rate rise before the end of the year, we expect to see more subdued lending over the coming months."
Ashley Law's managing director, Jock Cassidy, said the figures seemed particularly high, especially considering the July heat-wave, which would normally curb peoples’ appetite for borrowing. However, he added: “I am not sure if the public has been caught unaware by the interest rate rise, especially if borrowers have been seeking independent guidance have moved into fixed rates or capped rates. In my view the prospect of a rate increase was long overdue. Borrowing in general has reached record levels.”
Heritable Bank's managing director, Mark Sismey-Durrant, commented: “Buy-to-let lending is up reflecting continuing optimism in property finance. The reason for remortgaging becoming more popular may be because borrowers want to reduce their credit and dept. For people re-financing it is a lot cheaper to borrow on a mortgage.”
