September marks the fourth consecutive month that year-on-year lending has risen. Compared to August, estimated gross lending increased by 2% from £19.7bn.
In Q3, the CML expects to see an 18% rise in lending to £61.4bn up from £52.2bn in quarter two.
Mohammad Jamei, economist for the CML, said: “Mortgage lending is currently enjoying its best spell since 2008. As we expected, the second half of 2015 has seen a pick-up in activity in the housing market after a slow start to the year. Low inflation, strong wage growth, falling unemployment and competitive mortgage deals are all helping to support housing demand.”
Legal and General Mortgage Club director Jeremy Duncombe said despite the boost in lending as the market moves into autumn gross mortgage lending is likely to fall short of the £220bn full-year prediction issued at the start of the year. Duncombe said lending for the year is now expected to be £210bn due to less remortgage activity than was anticipated.
