Lending remains upbeat in August

Amanda Jarvis

September 19, 2002

Although this is lower than the record lending level seen in July, it is still significantly higher than the August 2001 figure of £16.5 billion. Total mortgage lending during 2002 is now expected to reach £210 billion.

Loans for house purchase amounted to £11.5 billion in August and represents 59% of total lending. The value of remortgaging was £6.6 billion in August, this compares with £4.5 billion in August last year.

The average advance to a first-time buyer increased to £85,721 (compared with £82,369 in July).
This increase is reflected in a higher advance to income ratio in August, with the average advance representing 2.55 times a first-time buyers income compared with 2.49 the month earlier.

However, the amount borrowed as a proportion of the value of their property decreased slightly from 75% to 74% in August.

Commenting on the figures, the CML’s director general Michael Coogan said: “The housing market remained buoyant in August with the third highest mortgage lending on record.”

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