This is the highest monthly estimate for gross lending since October 2008 (£18.6 billion).
Commenting on market conditions in this month's Market Commentary, CML chief economist Bob Pannell observes:
“Housing activity is set to strengthen further in the short-term, and to contribute materially to overall economic growth.
“Combined with the Bank of England’s recent optimism about the economy, this has led some commentators to speculate that an early rate rise may be on the cards. We do not currently share this view, which we believe underplays the importance that the MPC attaches to a secure recovery before raising rates."
David Copland, director of mortgage services for LSL’s financial services division said:
“The CML’s figures are testament to the success of Help to Buy 1 and the Funding for Lending Scheme as they continue to fuel the housing market recovery. The launch of Help to Buy 2 has had a positive effect with new enquires increasing and, even though there are only two lenders participating, the fact is that consumers now believe there is a chance of obtaining a higher LTV mortgage. With more lenders launching high LTV mortgages up to 95% without participation in the Help to Buy scheme, new business activity which will permeate through to mortgage completions in the New Year is fuelling a healthy pipeline.
“As more lenders launch their help to buy product ranges in the New Year this will further stimulate borrowers’ expectations. The only caveat will be the amount of housing stock on the market. Many potential movers are holding off selling their property as there is not enough stock currently on the market to encourage them to buy.”
Sophie Hall, Head of Intermediary at IRESS UK, comments on the CML’s latest mortgage lending figures:
“The mortgage market is going from strength to strength and at this rate, it’s possible we may not even see the typical festive slowdown materialise. Government schemes such as Help to Buy have helped fan the flames of buyer demand, while improved access to mortgage finance for those without substantial deposits is bolstering activity. Equally, rock-bottom interest rates have helped support those buying their new homes, pushing the level of repossessions to its lowest since 2008. As consumer confidence and spending improves, the upswing in mortgage lending is unlikely to run out of steam any time soon.
“As more – and cheaper - mortgage deals at higher LTVs hit the market when more lenders participate in Help to Buy 2, borrowers’ options will broaden further, and mortgage brokers will play an increasingly important role, making sure that their clients secure the best and most appropriate mortgage product possible.”
