Gross mortgage lending reached £19 billion in October 2014, according to the Council of Mortgage Lenders, 5 per cent up on September and 8 per cent up from the same month in 2013. Indeed, this is the highest total for an October since 2008, when lending reached £18.6 billion.
The figures remain lower than the peak reached in the summer, but as the temporary impact of implementing the mortgage market review fades, CML Economist Mohammad Jamei observes that “a clearer picture of the mortgage and housing market is emerging”.
“Nearly all indicators in the housing market align with our view of a gentle easing in market conditions,” he comments.
“These new figures show that lending is alive and well and breaking records despite stricter borrowing criteria,” comments Peter Rollings, CEO of Marsh & Parsons. “Lenders are keen to grow market share so first-time buyers and ladder steppers alike are currently benefiting from a new range of excellent mortgage deals. Pre-election calm has descended on the market but savvy buyers and sellers will run with the window of opportunity that this creates.”
“With an interest rate rise not expected before late next year, spurring on a host of attractive mortgage products, buyers and sellers still have a lot to be feeling confident about. Calmer trading conditions, more choice on the market, and less fierce competition will ensure activity finishes on a strong note at the end of the year.”
Paul Smith, CEO at haart, adds that “there is potential for market activity to gain traction in the new year”.
Source: The Movechannel