October lending suggests market momentum will continue into new year
Published: 21 November 2013 | Author: Bernard Clarke
Gross mortgage lending in October was at its highest for five years, our estimate shows. At £17.6 billion, the figure represented a 9% increase on the £16.2 billion advanced in September and was 37% higher than last October’s total of £12.9 billion. The last time gross lending was higher was in October 2008, when it totalled £18.6 billion.
We will provide a more comprehensive breakdown of October's estimate when we update the market in December, but our most recent detailed data (for September) showed:
- Increased activity by first-time buyers, with borrowing by them up 16% in the third quarter and 34% higher than a year ago.
- A monthly fall in borrowing by movers, although the amount they borrowed in the third quarter was 21% higher than in the second quarter and up 18% year-on-year.
- An increase in remortgaging, which was 11% higher in the third quarter than in the preceding three months.
Strong figures for the third quarter overall masked a typical monthly decline in lending in September. But October’s increase supports our view that market momentum will continue for the rest of 2013 and into the new year.