7% drop in lending

Gross mortgage lending down 7%




The Council of Mortgage Lenders (CML) has reported that estimated mortgage lending in September was £20.5bn, a 7% drop from August.

This figure was 2% higher than the £20.1bn lent in September 2015, but less than the total lending for August 2016 (£22.1bn).

Gross mortgage lending for the third quarter of 2016 was estimated at £63.6bn, 11% higher than the second quarter and 4% higher than for the same the period in 2015.

Mohammad Jamei, senior economist at the CML, 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.”

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