CML: 5% rise in gross mortgage lending in October

23 November 2009

According to the Council of Mortgage Lenders (CML), gross mortgage lending in October was an estimated £13.5bn - 5% higher than the £12.9bn seen in September.

The rise, which was largely expected, follows the typical seasonal activity between September and October seen over the last decade - in which the average monthly rise in mortgage lending (between the two months) has been 5%.

The CML says that the figure for mortgage lending is `in line` with its updated prediction for gross mortgage lending for 2009 as a whole - which stands at around £141bn.

Commenting on the figures, economist for the Council of Mortgage Lenders, Paul Samter, said: "There has been a significant change in the type of lending taking place from the start of the year. House purchase activity has picked up significantly. In contrast, remortgaging has dropped to decade-low levels as many borrowers have little incentive to refinance when they move onto low reversion rates, and others find themselves unable to do so due to equity constraints."

He went on to say that: "The coming months are likely to be dominated by seasonal factors rather than underlying change."

Tags: mortgage, lending

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