Gross lending hit a new monthly record in October of £30.3bn, according to the Council of Mortgage Lenders.
Lending was up by 4 per cent on the September figure of £29.2bn, but down by 8 per cent from the overall record of £33bn in August. Lending was up 12 per cent in comparison to October last year.
CML director-general Michael Coogan says: “For yet another month the housing market is proving itself to be in robust shape. Housing demand and mortgage approvals have been strong over recent months, despite the rise in interest rates.
“House price growth is also strong, so we expect to see lending remaining at high levels through the new year. But with interest rates rising for the second time in three months, we anticipate a modest slow down in house sales and mortgage approvals as 2007 progresses.”