The Council of Mortgage Lenders estimates that gross mortgage lending reached £21.8 billion in October – 8% higher than September’s lending total of £20.1 billion. In addition to the month-on-month rise, lending rose 19% year-on-year, from £18.4 billion in October 2014. This is the highest monthly figure since gross lending reached £23.6 billion in July 2008.
Bob Pannell, CML chief economist, comments:
“As lending in the regulated mortgage space picked up over the summer months, the pace of recovery has improved. This looks set to continue over the closing months of the year with the factors helping support this recovery continuing to be low inflation, strong wage growth, an improving labour market and competitive mortgage deals.
As a result lending this year is likely to exceed our forecast of £209 billion, though affordability pressures will limit business volumes for first-time buyers and movers meaning that we think the market has only modest further upside potential over the short-term.”