UK mortgage lending has risen to a high of £30.4 billion in July this year, industry figures reveal.

Gross mortgage lending in Britain remained strong last month, reaching the second highest figure on record and the strongest figure for the month of July ever, the Council of Mortgage Lenders (CML).

Mortgage lending for July 2006 was six per cent below June's record the £32.4 billion figure, but a fifth (19 per cent) higher than the same month last year. July is traditionally a quiet month in the home loans market.

CML director general Michael Coogan commented: "Another month, another record lending figure. Seasonal factors are continuing to support housing transactions and buoy house price growth.

"Bank of England approvals data shows that there is a strong appetite among borrowers for remortgages and other types of loan."

Mr Coogan added that the decision by the Bank of England's monetary policy committee to raise interest rates by a quarter point to 4.75 per cent is not reflected in the latest figures.

The loans expert forecast "more subdued lending over the coming months" and said that the data indicated that a second increase in the base rate is a distinct possibility before the end of the year.

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