UK mortgage lending rose at a record pace in April, official data showed on Wednesday, suggesting interest rate rises have done little to cool the booming housing market.
The Bank of England said that lending secured on dwellings rose by 9.8 billion pounds in April, the highest since records began in April 1993, and by a record 15.3 percent on the year.
The figures will add pressure on the Bank of England's Monetary Policy Committee, which meets next week to decide interest rates, to raise the cost of borrowing further.
The BoE has raised interest rates three times since November, although the most recent rise in May came too late to impact Wednesday's data.
Gilt and gilt futures markets, which are pricing in further rate rises over the coming months, showed no immediate reaction to the data but analysts thought it increased the chances of an imminent rate hike.
"Record mortgage lending in April and continuing relatively high levels of mortgage approvals enhances the case for a second successive (monthly) 25 basis point interest rate hike by the Bank of England next week," said Howard Archer at Global Insight.
BoE data also showed unsecured debt rose by a much less than expected 1.3 billion, compared with a consensus forecast of 1.7 billion.
This brought the rise of total lending in April to 11.1 billion, up from 10.9 billion in March.
In a sign the housing market is likely to remain strong for some time yet, mortgage approvals, loans agreed but not yet made, stood at 124,000. The figure is down from 127,000 the previous month but still high by historical comparisons.
Economists had expected strong mortgage lending figures from the BoE, after unofficial data from lenders for April showed borrowing for homes roaring ahead.
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