Gross mortgage lending fell by 3 per cent in October to an estimated 27 billion, according to the latest data from the Council of Mortgage Lenders.
Although this is down from the 27.7 billion of lending in September, it is still one of the highest monthly lending figures on record, and 16 per cent higher than the 23.2 billion of lending in the same month last year.
The CML says while it would normally expect lending activity to slow down at this time of year, the modest decline in October lending suggests the market is in good form. Figures due to be released by the Bank of England later this month will probably show that lending on a seasonally adjusted basis is close to the peak levels of two years ago.
The CML says the resilience of mortgage lending reflects the progressive recovery in housing transactions over the past year, and continuing high levels of remortgaging as people take advantage of attractive rates and switch to cheaper deals.