Gross UK mortgage lending hit a new September record of £29.5bn, according to the latest data from the Council of Mortgage Lenders (CML).

Lending fell by 11% on the all-time record reached in August of £33bn, but rose by 7% compared to September 2005 (£27.6bn).

Michael Coogan of CML, comments: "Housing demand and mortgage approvals in May and June this year were particularly strong and this supported the record levels of lending during the summer months. The lower levels of lending in September must be seen against this backdrop. House price growth and mortgage approvals continue to
remain strong, so we should expect to see continued levels of robust lending
over the coming months.

"But with financial markets now expecting a further interest rate rise, we
anticipate a slow down in house sales and mortgage approvals as we move into
2007."