Forum Brief: Mortgage lending

Average mortgages have nearly doubled over the last six years, new research has revealed.

According to the British Bankers' Association the average cost of buying is £112,000, more than four times the average salary.

Forum Response: Council of Mortgage Lenders

Michael Coogan, director general of the CML, told ePolitix.com: "Lending activity shows no signs of slowing in the near future, with the July cut in interest rates having given renewed buoyancy to the mortgage market.

"We expect lending to remain strong for the rest of this year - and into next year - until the impact of predicted increases in interest rates feeds through. While mortgages remain affordable, borrowers on variable rates need to plan ahead for higher borrowing costs."

Forum Response: Building Societies Association

Adrian Coles, director-general of the BSA, said: "Building societies' lending has more than doubled over the past year and is up over 25 per cent over the past month. New approvals have also grown sharply.

"There is no sign in our figures of any decline in borrower confidence, or in the popularity of building societies. On the contrary; both seem to be rising."