Gross mortgage lending declines in September

The Council of Mortgage Lenders estimates that gross mortgage lending in September was £11.6 billion.

This is 10% lower than August's gross lending figure of £12.9 billion and a 15% fall from £13.7 billion in September 2011.

Gross lending for the third quarter of 2012 was therefore an estimated £37.3 billion, an 8% increase from the second quarter of this year (£34.5 billion) but a 5% decrease from the third quarter of 2011 (£39.3 billion).

In today's market commentary, CML chief economist Bob Pannell observes: "There have been hints of demand softening over recent months, but monthly patterns may have been distorted by the Olympics. House purchase demand failed to lift significantly in the third quarter, despite much better mortgage availability. Remortgage activity continued to languish, in contrast to relatively strong levels a year ago."