Record Mortgage Lending In 2007

More mixed messages in the world of house buying as according to figures from the Council of Mortgage Lenders (CML).2007 was the strongest ever year for gross mortgage lending despite a late slump due to the credit crunch.

Over the year, lending reached an estimated £362billion, up 5% from £345billion in 2006 and above the CML’s forecast in October of £360billion.

Although December was the poorest month since May 2005,falling 21% from £28.6billion in 2006 to £22.6billion.

CML director general Michael Coogan said: “The credit crunch moved into its fourth month in December and continued to constrain the cost and availability of funds to lenders and, in turn, the cost and number of mortgage products available to borrowers"But he added: "Overall, despite the funding constraints caused by global conditions, the UK mortgage marketplace remains highly competitive and there will continue to be a range of good deals available to better-risk borrowers."