October lending hits £19bn

Sarah Davidson

November 20, 2014

This is 8% higher than October last year, when lending stood at around £17.5bn.

Mohammad Jamei, CML economist, said: “The market is in a steadier state than it was earlier in the year.

“As the temporary impact of implementing the Mortgage Market Review fades, a clearer picture of the mortgage and housing market is emerging.

“While the housing market has cooled in recent months, mortgage lending continues to be underpinned by positive factors.

“With expectations of the first interest rate rise moving to the fourth quarter of next year, as well as positive forecasts for growth, pay and unemployment, there is potential for market activity to gain traction in the new year.”

Last month’s lending total is the highest for any October since 2007, when it stood at £33bn.

Jonathan Harris, director of mortgage broker Anderson Harris, said: “Annual growth rate of 8% is rather lower than the 40% year-on-year jump seen in January.

“It makes for a more sustainable and healthy market, free from boom and bust.

“With the Bank of England suggesting that the first interest rate rise won’t be until the end of next year, at the earliest, this will boost activity in the mortgage market.

“There are some great mortgage offers around for those buying or remortgaging, and this will continue well into next year.

He added: “All we need now is for lenders to come up with innovative products that will solve some of the issues created by MMR.

“In particular, something directed at older borrowers who are struggling to get a mortgage, remortgage or even guarantee a child’s mortgage because of their age.”

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