UK mortgage lending surges to highest level since 2008 crisis Mortgage lending surged last month to its highest level since the financial crisis in 2008, in the latest sign that the recovery in the UK's housing market is becoming entrenched. The Council of Mortgage Lenders, a trade body, said gross mortgage lending rose to £16.6bn in July. The figure - the highest since October 2008 - is up 12 per cent from the previous month and more than a quarter higher than the estimate for July. Though lending remains well below its pre-crisis peak, the strong figure adds to evidence that the UK's mortgage market is recovering. Caroline Purdey, analyst at CML, said: "Our forward estimate of gross mortgage lending in July reinforces a growing evidence base of a strengthening in the housing and mortgage markets." Economists have linked the revival of the housing market to government policies to encourage would-be homeowners to buy property. The Help to Buy scheme, unveiled as part of chancellor George Osborne's March budget, and the Funding for Lending Scheme run by the Bank of England have both been credited with spurring activity. However, some economists have warned that the policies risk inflating another housing bubble.