Mortgage lending to see strong finish to 2013: CML

New CML data released today on the profile of UK lending in October 2013, including first-time buyer, home mover, remortgagor and buy-to-let lending.

Related topics:  Mortgages
Amy Loddington
12th December 2013
Mortgages

The Bank of England reported earlier this week gross UK mortgage lending was £17.6bn in October, a 9% increase compared to September and 36% higher than the total of £12.9 billion in October last year. This is the highest monthly estimate for gross lending since October 2008 (£18.6 billion).

The number of loans advanced to home movers for house purchase totalled 33,900 in October, up 19% compared to September and up by 16% compared to October last year. Home mover loans totalled £5.9bn in value in October, which was up 16% on September and 23% compared to October last year.

Home-owner remortgage activity declined in October with a total of 28,300 remortgage loans advanced in the period, down 12% compared to September and a 3% fall compared to October last year. These loans totalled £4.2bn in value, a decrease of 11% on September but up 14% compared to October 2012.

Paul Smee, director general of the CML, commented:

“After years of a relatively flat mortgage market, 2013 has shown signs of lending turning a corner and looks set to finish the year strongly. Increased financial optimism among the public as the economy recovers seems to be driving this upward trend and it is welcome to see that first-time buyers continue lending momentum as more look to own their first home."

Paul Hunt, managing director of Phoebus Software said:

“The mortgage market has made huge steps towards recovery. Crowds of first time buyers have returned creating a dramatic improvement in the market, as shown by a substantial uplift in activity. The figures show high LTV lending has doubled compared to a year ago, a sign that lenders have been proactive in their approach to lending. They have given the support to help a range of buyers, including those with small deposits, in the form of attractive mortgage deals and cheaper rates.

"It’s clear the mortgage market will continue to flourish, thanks to the major boost from the bottom up that will make the whole market more fluid. Although the Funding for Lending scheme may have been scrapped, lending will continue to rise in 2014 thanks to the Help to Buy scheme which will be the main force in driving the market forward. While more attractive deals come to the surface, I expect further signs of recovery to lending levels in the New Year.”

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