Mortgage lending down 9 per cent

Gross mortgage lending in October was an estimated £12.4 billion, unchanged from September but down 9% from £13.6 billion in October 2009, according to new data from the Council of Mortgage Lenders. This is the lowest October total since 2000 (£9.9 billion).

The month-on-month annual comparison is likely to continue to decrease a little in the coming months, because underlying lending volumes rose sharply in the latter part of 2009 as borrowers rushed to take advantage of the stamp duty concession before the end of the year.

In a speech at the Council of Mortgage Lenders' 2010 Mortgage Industry Conference and Exhibition, CML Chairman Matthew Wyles says the industry is likely to end 2010 having done around £137 billion gross lending, and around £9 billion net lending. The market remains subdued.