Gross mortgage lending for the third quarter of 2013 was 32% than the same time period in 2012, according to the Council Mortgage Lenders’ latest figures.
The total for gross lending in the third quarter reached £49.6bn representing a 17.6% quarterly rise from the second quarter and the highest lending amount by quarter since the third quarter of 2008. The CML figures show £16.2bn was advanced in September, down from £16.4bn in August. On an annual basis, lending in September was 41% higher than last year when £11.5bn was advanced.
CML chief economist Bob Parnell says: “Indicators suggest we are witnessing the strongest house purchase performance in five years. House prices too have revived but modestly, aside from aresurgent London market. With the Help to Buy mortgage guarantee scheme becoming fully operational in January and firms implementing the mortgage market review in April 2014, it may be several months into 2014 before we get a true gauge of the scale and reach of Help to Buy. For now, the scheme has launched against an already recovering UK housing market with several quarters of improving credit availability, growing competition, and strengthening demand.”
Avelo head of intermediary Sophie Hall says: “The mortgage market is in fine fettle at the moment. Help to Buy is providing a platform for first time buyers to secure high LTV mortgages, and we have yet to see the impact of Help to Buy 2. With house prices rising, demand is still strengthening, and prospective buyers are increasingly confident in the direction of property values. Would-be buyers in many parts of the country are no longer facing the prospect of their new home losing value following their purchase, bolstering confidence.”