Mortgage lending falls in August, says CML

Gross mortgage lending fell by some six per cent in August – compared to July – according to the Council of Mortgage Lenders (CML).

Borrowed funds totalled some £32.2 billion from £34.1 billion in the previous month and represented a decrease of three per cent from the August 2006 figure of £33 billion, in news that may be of interest to those in search of financial advice in Scotland.

The figures are not seasonally adjusted.

CML director general Michael Coogan commented that despite the falls, lending remained at "very high" levels and attributed some decrease in the short-term supply of lending to the problems lenders face in raising wholesale funding.

"It makes sense for consumers to continue to plan for rates at or about their current levels for the foreseeable future – we are not out of the woods yet," he added.

According to figures from the Registers of Scotland Executive Agency, the average house price in Scotland currently stands at £149,292.