CML: October Bank of England lending data

The Bank of England mortgage approvals data published today shows a less dramatic slowdown in mortgage approvals than preliminary surveys had suggested.

The number of approvals for house purchase dropped in October to 92,000 from 96,000 in September on an unadjusted basis, and to 88,000 from 100,000 on a seasonally adjusted basis. These are 29% and 31% respectively below the numbers in October last year, which was one of the strongest months in the past four years.

Commenting on the data, CML director general Michael Coogan said: "The total value of mortgage approvals was higher in October than a year ago, with the value of net lending at levels similar to the monthly levels experienced in 2005. The number of approvals for house purchase fell as expected, but not by as much as earlier evidence might have led us to anticipate.

"The market is slowing, as we have always said it would at this point in the year. And the slowdown is being exacerbated by the funding shortfall being experienced through the continued closure of the securitisation market. But the situation is not as bleak as some of the more dramatic commentary would suggest. Even so, we would like the government and the Bank of England to consider how best to unblock the funding logjam that some UK lenders are experiencing, so that they can continue to fully meet consumer demand."