Gross mortgage lending £20.5 billion in September
Published: 20 October 2016
The Council of Mortgage Lenders estimates that gross mortgage lending reached £20.5 billion in September. This is 7% lower than August’s lending total of £22.1 billion, and 2% higher than the £20.1 billion lent in September last year. This is the highest September figure since 2007 when gross lending reached £29.9 billion.
Gross mortgage lending for the third quarter of 2016 was therefore as estimated £63.6 billion. This is 11% higher than the second quarter of this year, and 4% higher than the third quarter of 2015.
Commenting on market conditions in this month’s market commentary, CML senior economist Mohammad Jamei said:
Remortgage activity looks set to grow, helped by attractively priced mortgage deals encouraging borrowers to refinance. Prospects for house purchase activity continue to look slightly subdued, when compared to the same period a year ago.
Despite this, housing market sentiment continued to improve in September, after recovering in August. As a result, we expect a modest rise in approvals, though at levels lower than seen earlier this year, as the lack of properties on the market for sale and affordability constraints continue to bear down on borrowers.
Notes to editors
1. The Council of Mortgage Lenders' members are banks, building societies and other lenders who together undertake around 97% of all residential mortgage lending in the UK. There are 11.1 million mortgages in the UK, with loans worth over £1.3 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. The CML's gross mortgage lending estimate for October will be published on Thursday 17 November 2016.
4. This month's full market commentary can be viewed on the CML website under the News & Views - Analysis section.