Gross mortgage lending held steady in September and was an estimated £16.2 billion, according to the Council of Mortgage Lenders. This is only a slight change to August’s gross lending total of £16.4 billion and is 41% higher than September last year (£11.5 billion).
Gross lending for the third quarter of 2013 was an estimated £49.3 billion. This represents a 17.6% increase on the second quarter of 2013 and a 32% increase on the third quarter of last year. This is the highest lending amount by quarter since quarter three of 2008.
In today’s market commentary, CML Chief Economist Bob Pannell comments:
“Indicators suggest we are witnessing the strongest house purchase performance in five years. House prices too have revived but modestly, aside from a resurgent London market.
“With the Help to Buy mortgage guarantee scheme becoming fully operational in January and firms implementing the mortgage market review in April 2014, it may be several months into 2014 before we get a true gauge of the scale and reach of Help to Buy. For now, the scheme has launched against an already recovering UK housing market with several quarters of improving credit availability, growing competition, and strengthening demand.”
Sophie Hall, Head of Intermediary at Avelo, comments on the CML’s latest mortgage lending figures:
“The mortgage market is in fine fettle at the moment. Help to Buy is providing a platform for first time buyers to secure high LTV mortgages, and we have yet to see the impact of Help to Buy 2. With house prices rising, demand is still strengthening, and prospective buyers are increasingly confident in the direction of property values. Would-be buyers in many parts of the country are no longer facing the prospect of their new home losing value following their purchase, bolstering confidence.
While house prices hitting a new high will boost buyer appetite, affordability is a potential fly in the ointment. Government schemes are helping buyers access mortgages, but brokers will need to keep affordability in mind, especially with the MMR being implemented next year.”
Quarterly gross mortgage lending up 32% on last year
Gross mortgage lending held steady in September and was an estimated £16.2 billion, according to the Council of Mortgage Lenders. This is only a slight change to August’s gross lending total of £16.4 billion and is 41% higher than September last year (£11.5 billion).
Gross lending for the third quarter of 2013 was an estimated £49.3 billion. This represents a 17.6% increase on the second quarter of 2013 and a 32% increase on the third quarter of last year. This is the highest lending amount by quarter since quarter three of 2008.
In today’s market commentary, CML Chief Economist Bob Pannell comments:
“Indicators suggest we are witnessing the strongest house purchase performance in five years. House prices too have revived but modestly, aside from a resurgent London market.
“With the Help to Buy mortgage guarantee scheme becoming fully operational in January and firms implementing the mortgage market review in April 2014, it may be several months into 2014 before we get a true gauge of the scale and reach of Help to Buy. For now, the scheme has launched against an already recovering UK housing market with several quarters of improving credit availability, growing competition, and strengthening demand.”
Sophie Hall, Head of Intermediary at Avelo, comments on the CML’s latest mortgage lending figures:
“The mortgage market is in fine fettle at the moment. Help to Buy is providing a platform for first time buyers to secure high LTV mortgages, and we have yet to see the impact of Help to Buy 2. With house prices rising, demand is still strengthening, and prospective buyers are increasingly confident in the direction of property values. Would-be buyers in many parts of the country are no longer facing the prospect of their new home losing value following their purchase, bolstering confidence.
While house prices hitting a new high will boost buyer appetite, affordability is a potential fly in the ointment. Government schemes are helping buyers access mortgages, but brokers will need to keep affordability in mind, especially with the MMR being implemented next year.”