October sees 'upturn in mortgage lending'

Date:Thursday 19th November 2009
Author: Max Freedman

Mortgage lending increased by five per cent in October compared to the previous month, according to mew data from the Council of Mortgage Lenders (CML).

The figure of £13.5 billion is up from September's total of £12.5 billion, but a decrease of more than a quarter (27 per cent) on the £18.5 billion that was recorded in October 2008.

Commenting on the figures, CML economist Paul Samter said: "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 added that any changes seen in upcoming months were more likely to be due to seasonal changes rather than any significant underlying factors.

Speaking upon the publication of the September figures, Mr Samter stated that house buying and mortgaging activity is running at "considerably" higher levels than it was at the beginning of 2009.