Gross new mortgage lending topped £17.8bn in October, and the monthly rise in net lending was a record £5.9bn, up from £5.6bn in September, according to the British Bankers’ Association (BBA).
The BBA reports that 270,500 mortgage loans, worth £19.6bn, were approved in October, and the results are the highest figures yet, up 23% by value and 10% by volume on the same period last year. Loans for remortgaging were 17% higher by volume than they were last year, and equity withdrawal loans were up 30% by number.
The figures cast doubt on predictions by other industry bodies that growth is unsustainable.
David Dooks, director of statistics at the BBA, said: “This strong lending growth is likely to be maintained in coming months, as record numbers of approvals granted in October progress to completion. Higher numbers of loans approved for house purchase and remortgaging were consistent with the current strength of the housing market, while expenditure on the back of property price appreciation, in preference to unsecured lending, led to a more equity withdrawal loans being approved.”