Monthly borrowing has reached its highest level since July 2008, the Council of Mortgage Lenders has revealed.
According to its latest figures, gross mortgage lending in October 2015 was £21.8bn – 8 per cent higher than 2015’s September lending total of £20.1bn.
The total gross mortgage lending across Q3 in 2015 reached £61.4bn, an increase on the £55bn seen over the same period in 2014.
Bob Pannell, CML chief economist, said: “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 £209bn, 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.”
Steve Griffiths, head of sales and distribution for lender Kensington Mortgages, said: “It’s great to see that lending is continuing to increase, as favourable market conditions driven by low rates, low inflation and rising wages are helping more people to afford a property.
“However, it is important to judge the health of the market not only by the topline number, but also by the different demographics that are being loaned to, in order to determine the fairness of consumer access to the mortgage market.”
Adviser View
Brian Murphy, head of lending for national advisory Mortgage Advice Bureau, said: “Following a brief slowdown at the end of the summer, mortgage lending has now bounced back to its highest post-recession level.
“With an 8 per cent jump in lending between September and October, it is likely that 2015’s total will now exceed its original forecast, indicating 2015 has been a strong year for lenders and borrowers alike.”
