Mortgage lending reached a record £219 billion sterling during 2002 as people remortgaged to take advantage of low rates, figures showed today.
During the year, remortgaging accounted for 38 per cent of total lending with £83.6 billion advanced.
The Council of Mortgage Lenders (CML) said it expected lending to remain strong well into the spring but predicted a slowdown in growth later in the year as house price inflation eases.
CML director general Mr Michael Coogan said:"The conditions are in place for a soft landing for the housing market in 2003, but the market is not risk free".
The group warned the longer steep house price rises continued, the greater the risk of a sharp correction became, and it urged borrowers not to over-stretch themselves.
PA