Mortgage lending high in January

According to The Council of Mortgage Lenders (CML), mortgage lending hit an all-time January high last month, indicating that the long-running housing boom remains intact despite higher interest rates.

They reported that lenders advanced £26.8bn in new home loans during the month, down 6% on December's figure but still a January record. The figure suggeststhat buyers shrugged off January's quarter-point rise that took interest rates to 5.25%.

The CML's director general Michael Coogan said: "Mortgage lending kicked off 2007 in robust shape, and we expect this strength to continue over the next few months. Quite how strong it will be later in the year depends on what happens to interest rates." The Bank of England kept rates steady this month, but financial markets are pricing in one more rise, to 5.5% this year.