Low rates bring a home loan record

Mortgage lending rose to a record level last month as borrowers took advantage of the lowest home loan rates for decades.

Gross mortgage lending by banks, building societies and other institutions hit £11bn in June, almost dou ble the total for January and the highest figure since records began in 1993.

But the Council of Mortgage Lenders tried to dispel suggestions that the housing market was overheating. It said it saw little evidence of a "classic" boom developing, and that the figures masked wide regional variations.

Last month's mortgage advances total is 21% higher than the £9.1bn in May and almost 31% up on the £8.4bn in June 1998.

It was partly fuelled by an increase in remortgaging, which accounted for 31% of total mortgage business last month.

However, a report from the Royal Institution of Chartered Surveyors said the market was starting to become "inflamed" as a result of a severe shortage of quality properties being put up for sale.