Gross mortgage lending up 5% month-on-month

The Council of Mortgage Lenders estimates that gross mortgage lending reached £19 billion in October.

This is 5% higher than September (£18 billion), and 8% higher than October last year (£17.5 billion). This is the highest lending total for an October since 2008 (£18.6 billion).

Commenting on market conditions in this month’s Market Commentary, CML economist Mohammad Jamei observes:

"The market is in a steadier state than it was earlier in the year. As the temporary impact of implementing the mortgage market review fades, a clearer picture of the mortgage and housing market is emerging. Nearly all indicators in the housing market align with our view of a gentle easing in market conditions.

"While the housing market has cooled in recent months, mortgage lending continues to be underpinned by positive factors. With expectations of the first interest rate rise moving to the fourth quarter of next year, as well as positive forecasts for growth, pay and unemployment, there is potential for market activity to gain traction in the new year.”