Mortgage lending in Britain is showing further signs of slowdown, the latest housing market research has indicated.

The Council of Mortgage Lending (CML) says that four interest-rate rises in the last ten months had succeeded in cooling the lending market.

Mortgage lending totalled £30.6 billion in May, the CML claims, a new record for the month.

But although May's figure was five per cent up from the corresponding month last year and represented a 12 per cent increase compared to April's lending total of £27.4 billion, the rate of growth was below the 12 and 15 per cent seen in 2007 so far.

"While today's lending figure is a new record for the month of May, it does indicate that the market is slowing down following the rapid and sustained growth we saw last year," commented CML director Michael Coogan.

"Going forward we expect lending to ease as we progress through the year, but the market will remain in good shape. Although further interest rate rises will continue to dampen demand, we are still on course to meet our prediction of a record £360 billion of lending during 2007."

Separate figures from the British Bankers' Association (BBA) released today showed that net mortgage lending rose by £5.8 billion in May, ahead of the 2007 monthly average of £5.4 billion.

BBA director of statistics David Dooks admitted that the stronger demand in May was "somewhat surprising" especially as it preceded the anticipated introduction of home information packs (Hips), which have now been delayed until August.

"Hips may well distort mortgage data in the short-term, but this effect should smooth out with the phased introduction now planned," he added.

Want to advertise in Scarlet, Harlot or this website? Click here and download our media pack which has all the information you need.

Scarlet Media Pack 2008