Overall the usual seasonal dip seen in mortgage lending in September was no different this year but was up by 20 per cent compared to the same month last year, with lending in the third quarter at its highest since 2007.
There were 52,800 loans for home owner house purchase in September with a total value of £8.4 billion, down by 14 per cent on August. Overall in the third quarter of 2013, there were 170,700 house purchase loans advanced, worth a total of £27.1bn, which is the highest quarterly figure since the fourth quarter of 2007.
Loans advanced to home movers totalled 29,100 in September, which was down in volume by 16 per cent compared to August but up by 11 per cent compared to September last year. Home mover loans totalled £5.2bn in value in September, which was down 13 per cent on August but up 18 per cent compared to last year.
Home-owner remortgaging showed strong growth in September with a total of 32,900 remortgage loans advanced in the period, up 20 per cent compared to August and 36 per cent on September last year. This totalled £4.7bn in value, an increase of 24 per cent on August and 47 per cent in value compared to September 2012.
Buy-to-let lending in the third quarter of 2013 grew with 43,900 loans advanced in this quarter which was up 16 per cent on the second quarter of 2012 and 36% compared to last year. These loans were worth £5.7bn which was up 19% on the previous quarter and 43% up compared to the same period last year.
Director general of the CML Mr Paul Smee, was quoted saying,: “First-time buyers were a key driver in the first half of 2013 but now home movers and remortgages are showing renewed strength which puts the market in a good position to continue momentum into the final few months of 2013 and the New Year.”
Managing director of Phoebus Software Mr Paul Hunt had said,: “By almost any measure you use, it’s clear that lending levels improved drastically in the last few months. The mortgage industry has found a way to sustainability and significantly boost activity in the property market.
“There are many new signs of life: house purchase lending is up by a fifth compared to a year ago and first-time buyer activity has jumped significantly. Lenders have been proactive in their approach to lending and their innovative steps to improve mortgage availability have heated up the mortgage market. Some of the roadblocks are being knocked off the pathway for prospective buyers, and the number of mortgage deals on the market has increased rapidly. As the Help to Buy scheme gains momentum it should kick-start the housing market from the bottom tier. Without doubt, the mortgage market is taking steps towards fertile grounds.”
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