House purchase lending hits highest level since 2007

Mortgage lending in the third quarter of 2013 was at its highest quarterly level since 2007, according to the Council of Mortgage Lenders.

First-time buyers took out 23,600 loans in September, a 34 per cent increase compared with September 2012.

Third quarter results saw first-time buyer lending up 16 per cent on the second quarter of 2013 and 34 per cent up on the third quarter of 2012.

Article continues after advert

Home movers lending decreased by 16 per cent in volume compared with August but was up 18 per cent compared to last year.

Third quarter lending for home movers was up 21 per cent on the second quarter.

Home-owner remortgage lending showed strong growth in September, up 20 per cent compared with August and up 11 per cent in the third quarter compared with the second quarter of 2013.

Total buy-to-let loans advanced increased slightly to 14,600 loans in September, up 0.7 per cent compared to August.

Buy-to-let overall in quarter three of 2013 grew compared to the second quarter and the same period last year.

As previously reported, gross UK mortgage lending was £16.2bn in September, a slight decrease compared to August when it was £16.4bn but up 41 per cent compared to September last year.

Gross lending for the third quarter of 2013 was £49.3bn.

This represented a 17.6 per cent increase on the second quarter of 2013 and a 32 per cent increase on the third quarter of last year.

Paul Smee, director general of the CML, said: “The typical seasonal fall in lending in September was expected but we are seeing appreciable year-on-year and quarterly lending rises that suggests the market is continuing its recovery.

“First-time buyers were a key driver in the first half of 2013 but now home movers and remortgages are showing renewed strength which puts the market in a good position to continue momentum into the final few months of 2013 and the new year.”