Mortgage lending stable says industry

Mortgage lending remained stable throughout October, say the latest figures released by some of the industries leading bodies.

The Council of Mortgage Lenders (CML) said that gross new borrowing fell by three per cent to £27 billion, although that figure was still 16 per cent on the same period of last year, it added.

Net lending, which removes redeemed mortgages from the figure, rose by another £4.3 billion, said the British Bankers Association (BBA).

That was less than October but still in line with the monthly average.

“This reflects the steady state of the mortgage market which shows little prospect of concerted movement either upwards or downwards in the near term,” BBA director of statistics David Dooks told the BBC.

Fresh credit borrowing also rose £243 million, which was consistent with a small upturn in retail sales, said the BBA.

Most mortgage lenders now estimate that the housing market has returned to some of its former health in recent months. Although half of all mortgage lending is people changing their deal, their estimation is supported by new house price data.

The number of people looking for a new home has risen for the fourth month running says the Royal Institution of Chartered Surveyors, and Halifax and Nationwide have said that prices had returned to just under four per cent over this time last year.

“Figures due to be released by the Bank of England later this month will probably show that lending is close to the peak levels of two years ago,” said CML director general Michael Coogan said.

© Adfero Ltd

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