Gross mortgage lending held steady in October and was an estimated £20.6bn, according to the Council of Mortgage Lenders.
This closely matches September’s gross lending total of £20.5bn but it is 5 per cent less than October last year (£21.8bn).
CML senior economist Mohammad Jamei said: “Housing market sentiment is holding up well, with demand still strong. This has led to a pick up in approvals, as expected.
“The more pressing issue is on the supply side, where the lack of private sellers continues to be an obstacle for would-be borrowers.
“For this reason, we expect lending in the months ahead to be driven more by remortgaging activity and less by house purchases. Remortgaging will be helped by competitively priced mortgage deals, which are encouraging borrowers to refinance.”
| Gross mortgage lending, not seasonally adjusted |
| | | | Total | |
| | | | £m | |
| Year | | | | |
| 2005 | | | 283,452 | |
| 2006 | | | 340,931 | |
| 2007 | | | 356,802 | |
| 2008 | | | 247,805 | |
| 2009 | | | 140,573 | |
| 2010 | | | 133,807 | |
| 2011 | | | 138,257 | |
| 2012 | | | 144,512 | |
| 2013 | | | 177,715 | |
| 2014 | | | 203,384 | |
| 2015 | | | 219,645 | |
Jonathan Harris, director of mortgage broker Anderson Harris, said: "There has never been a better time to remortgage with rock-bottom rates to attract borrowers.
“With lenders vying for business ahead of the year-end and demand for mortgages for house purchase steady but not spectacular, banks and building societies realise there is plenty to be gained by slashing the pricing on remortgage deals.”
emma.hughes@ft.com
