Sharp rise in September mortgage lending
Mortgage lending is currently up at its highest level for seven years, according to the latest data out from industry trade body, The Council of Mortgage Lenders.
It estimates that gross mortgage lending reached £20bn in September – 2% up on August’s lending total of £19.7bn, and a whopping 12% higher than the £17.8bn lent out to borrowers last September.
This is the fourth month in a row that there has been a sharp improvement in year-on-year lending.
Gross lending in the third quarter of 2015 was an estimated £61.4bn, 18% higher than the £52.2bn advanced in the second quarter of this year.
CML economist Mohammad Jamei said:
“Mortgage lending is currently enjoying its best spell since 2008. As we expected, the second half of 2015 has seen a pick up in activity in the housing market after a slow start to the year. Low inflation, strong wage growth, falling unemployment and competitive mortgage deals are all helping to support housing demand.
“We expect to see further modest growth towards the end of the year, although affordability pressures are likely to limit gains for home movers and first-time buyers.”