Strong lending figures for September are expected to continue through until the end of the year, according to the Council of Mortgage Lenders (CML).
September figures from the CML and the Office of the Deputy Prime Minister put lending at £19.7bn, compared to £13.7bn for the previous September.
However, Michael Coogan, director general of the CML, suggested a cautionary outlook: ‘Lending in September was marginally lower than the record levels in July and August ‘ clearly the housing market is still out-performing the rest of the economy and this cannot continue for ever.’ Coogan said he expected a gentle easing next year, rather than a dramatic slowdown.
Loans for house purchase totalled £10.6bn in September, 54% of total lending. Remortgaging reached 39% at £7.6bn.
First-time buyers on average borrowed £85,697, 2.57 times their income. They borrowed an average 77% of the value of their property, while former owner-occupiers borrowed an average 61%. 40% of loans for house purchase were to first-time buyers.
The British Bankers Association’s (BBA) September lending figures show gross mortgage lending from the major banks totalled £13.1bn from a total of 212,600 loans.
The average loan value for house purchase fell for the third month in a row, to £86,900.
Simon Pitkeathley, executive director of the BBA, said: ‘Only half of loans approved in September were for house purchase. It would seem increas-ing numbers of homeowners are seeking out better deals on their existing loans.’