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Gross mortgage lending up 14% in October

CML

Gross mortgage lending hit 12.9bn in October, a 14 per cent increase from the £11.3bn advanced in September, according to the Council of Mortgage Lenders.

Lending was 4.9 per cent higher than the £12.3bn advanced in October 2011.

To the end of October, lender had advanced an estimated £118.7bn to borrowers this year.

CML chief economist Bob Pannell says: “House purchase and remortgage activity both appear to have picked up recently, and this should be supported by an improvement in the availability and pricing of mortgages.

“The Funding for Lending Scheme is likely to have made an early positive impact, helping to counter some of the negative pressures associated with a protracted and weak economic recovery.”

SPF Private Clients chief executive Mark Harris says: “The mortgage market may still be constrained when you compare it with what it was at the height of the housing boom but it is showing encouraging signs of easing. 

“Money market rates are falling as the Funding for Lending scheme continues to have an impact on pricing and availability of mortgages.This bodes well for next year as we expect this easing to continue. As lenders saturate the low loan-to-value market with a plethora of rock-bottom rates, they will be forced to turn to the higher LTV bracket if they are going to do any significant levels of business, which will mean cheaper rates and more choice for first-time buyers in particular.”

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