RICS: CML October mortgage lending data

Commenting on the CML mortgage lending data, David Stubbs, RICS senior economist said: "Today's figures show that home buyers had begun to shift away from fixed rate deals as far back as October as the ensuing credit crunch raised expectations that the Bank of England would lower interest rates. We expect this pattern to become more pronounced over the next few months given the swift reaction of both Nationwide and HBOS to last week's base rate cut.

"Significantly, the combination of stagnating house prices and lower mortgage rates in 2008 should boost affordability for the first time since 2001. Many would-be first-time buyers, who will have been unable to access the housing market in recent years, will see this as an opportunity to get their first step on the ladder."