Gross mortgage lending £20.6 billion in October
Published: 17 November 2016
Gross mortgage lending held steady in October and was an estimated £20.6 billion, according to the Council of Mortgage Lenders. This closely matches September’s gross lending total of £20.5 billion and is 5% lower than October last year (£21.8 billion).
Commenting on market conditions in this month's market commentary, CML senior economist Mohammad Jamei said:
Housing market sentiment is holding up well, with demand still strong. This has led to a pick up in approvals, as expected.
The more pressing issue is on the supply side, where the lack of private sellers continues to be an obstacle for would-be borrowers.
For this reason, we expect lending in the months ahead to be driven more by remortgaging activity and less by house purchases. Remortgaging will be helped by competitively priced mortgage deals, which are encouraging borrowers to refinance.
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 November will be published on Thursday 15 December 2016.
4. This month's full market commentary can be viewed on the CML website under the News & Views - Analysis section.