Gross lending for the third quarter of 2013 was £49.3 billion. This represents a 17.6% increase on the second quarter of 2013 and a 32% increase on the third quarter of last year.
Lending for home-owner house purchase declined slightly in September due to the seasonal dip consistently seen in the yearly lending cycle to 52,800 loans, down by 14% on August, but the underlying growth continued with an increase of 21% on September last year. The value of these loans totalled £8.4bn, down £13% on August but up 27% on September last year.
Overall in the third quarter of 2013, there were 170,700 house purchase loans advanced, worth a total of £27.1bn, which is the highest quarterly figure since the fourth quarter of 2007.
Loans advanced to home movers totalled 29,100 in September, which was down in volume 16% compared to August but up by 11% compared to September last year. Home mover loans totalled £5.2bn in value in September, which was down 13% on August but up 18% compared to last year.
Overall for the third quarter of 2013, loans advanced to home movers totalled 95,700, worth £16.8bn. This was an increase of 21% in volume, and 28% in value, compared to the second quarter of 2013. This was also 9% higher in numbers compared to the third quarter last year and 13% up in value.
Home-owner remortgage showed strong growth in September with a total of 32,900 remortgage loans advanced in the period, up 20% compared to August and 36% on September last year. This totalled £4.7bn in value, an increase of 24% on August and 47% in value compared to September 2012.
Remortgaging in the third quarter of 2013 grew by 11% to 90,400 loans advanced from the second quarter of 2013 and up from 72,000 loans in quarter three of 2012.
Paul Smee, director general of the CML, commented:
“The typical seasonal fall in lending in September was expected but we are seeing appreciable year-on-year and quarterly lending rises that suggests the market is continuing its recovery.
"First-time buyers were a key driver in the first half of 2013 but now home movers and remortgages are showing renewed strength which puts the market in a good position to continue momentum into the final few months of 2013 and the new year."
Mark Harris, chief executive of mortgage broker SPF Private Clients, says:
"Although there tends to be a seasonal fall in lending in September, on a quarterly basis it was at its highest level since 2007, demonstrating that the recovery continues. First-time buyers continue to be extremely active, but home movers and the remortgaging market also continue to pick up, showing strength in all areas, and a healthy, well-functioning market
"Affordability is not yet an issue, even though first-time buyers continue to borrow slightly more relative to income than in previous months. Cheaper mortgage rates mean total payments remain low relative to income, which is encouraging as it means those getting on the property ladder for the first time are not over stretching themselves. This is crucial as buyers must make sure the numbers add up and they can afford any mortgage they take out.
"While all this is encouraging, it needs to be put into context. Transaction levels are still well off their pre-crisis peak although the market is moving in the right direction."
