Gross mortgage lending reached £19bn in October, meaning the market is in a steadier state now than last year, one of the Council of Mortgage Lenders’ economists has said.
Speaking as the organisation revealed that October 2014’s lending total had been the highest for any October since 2007, when it was £33bn, Mohammad Jamei said: “The market is in a steadier state than it was earlier in the year.
“As the temporary impact of implementing the mortgage market review fades, a clearer picture of the mortgage and housing market is emerging.”
The figure is also 5 per cent higher than September and 8 per cent higher than October last year.
According to the CML, gross mortgage lending in 2013 was £176bn, which is also the highest since 2008.
Mr Jamei said: “Nearly all indicators in the housing market align with our view of a gentle easing in market conditions.
“While the housing market has cooled in recent months, mortgage lending continues to be underpinned by positive factors.”
With expectations of the first interest rate rise moving to the fourth quarter of next year, as well as positive forecasts for growth, pay and unemployment, Mr Jamei added that there was “potential for market activity to gain traction in the new year”.
Adviser view
Chris Dunn, a director of Derbyshire-based Orridge and Dunn Independent Financial Advice, said: “Certainly from our point of view, in the last six months to a year mortgage volumes have increased notably.
“The 95 per cent loan-to-value mortgages have made a big difference.”
