Lending remains upbeat in August
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.”