Mortgage lending highest since 2008

Gross mortgage lending reached an estimated £18.6bn last month – the highest August lending total since 2008.

The provisional figures, released by the Council of Mortgage Lenders (CML), show a rise of 13% on the total funds lent in the same month last year.

CML chief economist Bob Pannell said: “The narrative of recovering house purchase and buy-to-let activity continued through August.

“However, it is important to be aware that this picture is being flattered by strong seasonal factors through the summer period.”

Mr Pannell said there could now be “gentle slowing” in the mortgage market, driven partly by “softening” in London.

The CML represents institutions that collectively account for 95% of residential mortgage lending in the UK.