The amount of money lent to borrowers to buy properties was at its highest for eight months in June, according to the mortgage lending figures from banks and building societies.
However, the impact of new tighter mortgage lending rules and the possibility of a series of interest rate rise could lead to more subdued lending in the months ahead, said the CML. Last month the Bank of
CML chief economist
At present, the proportion of new mortgages where the amount borrowed is at or above 4.5 income been about 11% of the market, said the CML, comfortably below the 15% threshold now proposed. However, some lenders who do not assess affordability using the interest rate rise stress test may be reluctant to change their business models, while others might decide to lend less than 15% of new mortgages to those with high loan to income mortgages.
"Any tightening of affordability metrics is likely to have more pronounced impacts on the
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