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Gross mortgage lending declines in September

18 Oct 12

Gross mortgage lending declines in September

The Council of Mortgage Lenders estimates that gross mortgage lending in September was £11.6 billion. This is 10% lower than August’s gross lending figure of £12.9 billion and a 15% fall from £13.7 billion in September 2011.

Gross lending for the third quarter of 2012 was therefore an estimated £37.3 billion, an 8% increase from the second quarter of this year (£34.5 billion) but a 5% decrease from the third quarter of 2011 (£39.3 billion).

In today’s market commentary, CML chief economist Bob Pannell observes:

"There have been hints of demand softening over recent months, but monthly patterns may have been distorted by the Olympics. House purchase demand failed to lift significantly in the third quarter, despite much better mortgage availability. Remortgage activity continued to languish, in contrast to relatively strong levels a year ago."

Notes to editors

1. The Council of Mortgage Lenders' members are banks, building societies and other lenders who together undertake around 95% of all residential mortgage lending in the UK. There are 11.2 million mortgages in the UK, with loans worth over £1.2 trillion.

2. The Council of Mortgage Lenders does not publish statistics for mortgage approvals. The data in our monthly Regulated Mortgage Survey and gross lending press releases relate to mortgage advances only. A mortgage approval is the firm offer to a customer of a specific amount of credit secured against a particular property. A mortgage advance is the total amount of loan actually provided to the buyer, by the lender.
 
3. Next month’s gross lending press release and market commentary will be published on 20 November 2012.

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