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Quarterly gross mortgage lending up 32% on last year

Gross mortgage lending rose to the highest amount in the past five years in the third quarter of 2013.

According to the latest figures from the Council of Mortgage Lenders (CML), gross mortgage lending in September was an estimated £16.2 billion.

This is 41% higher than the figure for September last year which was £11.5 billion.

It takes gross lending for the third quarter of 2013 to £49.3 billion which is the highest lending amount by quarter since quarter three of 2008.

The figure for the third quarter of 2013 represents a 17.6% increase on the second quarter of 2013 and a 32% increase on the third quarter of last year.

Last month’s figure of £16.2 billion was only a slight change to the August figure of £16.4 billion which shows lending figures are holding steady.

CML chief economist Bob Pannell think it will take a while to see the benefits of the government’s Help to Buy mortgage guarantee scheme.

Mr Pannell insists it is too soon to gauge how much extra housing and mortgage demand the new scheme will stimulate.

He said: “Indicators suggest we are witnessing the strongest house purchase performance in five years. House prices too have revived but modestly, aside from a resurgent 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.”

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