GROSS mortgage advances totalled £19.5bn in August - the third highest on record.
Although lower than the record lending level seen in July, it is still significantly higher than the August 2001 figure of £16.5bn. Total mortgage lending during 2002 is now expected to reach £210bn, although leanding is expected to slow next year.
Loans for house purchase amounted to £11.5bn in August and represented 59 per cent of total lending. The value of remortgaging was £6.6b in August, compared with £4.5bn a year earlier.
The director general of the Council of Mortgage Lenders, Michael Coogan, said: "Low interest rates and unemployment are set to continue throughout 2002, ensuring conditions remain favourable for the housing market."
This suggests that lending will stay strong for the remainder of the year.
"It is now likely that total gross lending in 2002 will reach £210 billion. However, lending is expected to slow going into 2003 as conditions become less favourable for the housing market."
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