Gross mortgage lending shows strongest performance in five years
Published: 20 November 2013
The Council of Mortgage Lenders estimates that total gross mortgage lending increased to £17.6 billion in October, representing a rise of 9% from £16.2 billion in September and 37% higher than the total of £12.9 billion in October last year. This is the highest monthly estimate for gross lending since October 2008 (£18.6 billion).
Commenting on market conditions in this month's Market Commentary, CML chief economist Bob Pannell observes:
“Housing activity is set to strengthen further in the short-term, and to contribute materially to overall economic growth.
“Combined with the Bank of England’s recent optimism about the economy, this has led some commentators to speculate that an early rate rise may be on the cards. We do not currently share this view, which we believe underplays the importance that the MPC attaches to a secure recovery before raising rates."
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 mortgage lending press release 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 will be published on 19 December and CML's housing market forecasts will be published on 10 December.