Figures for the third quarter of the year showed an 11% year-on-year rise in the value of mortgage lending and an 8% increase on September.
Bob Pannell, CML chief economist, said a pick-up of lending in the regulated mortgage space has improved the pace of recovery. He added that this looks set to continue over the closing months of the year.
He cited factors as low inflation, strong wage growth, an improving labour market and competitive mortgage deals as helping to support the recovery.
Figures released by the CML in July showed a ‘record’ number of people in work and a low rate of unemployment (5.6%), as well as a 3% increase in salaries, the strongest position for several years.
The trade body predicts the yearly overall lending figure will exceed its original forecast of £209bn.
Jeremy Duncombe, director, Legal & General Mortgage Club, said that while it is great to see lending is continuing to grow, allowing more people to get on the property ladder, it remains ‘crucial’ to meet ‘rising demand with a boost in supply’.
“The biggest challenge for borrowers is meeting lenders’ affordability criteria, as property prices continue to rise in many areas while wages fail to keep pace.
“First-time buyers will find it difficult to get themselves in a position to buy unless they have assistance from the bank of mum and dad. This should keep a lid on the market and ensure we don’t return to runaway growth,” he said.
Richard Sexton, director of e.surv chartered surveyors, said a ‘benign’ lending climate is ‘particularly benefitting’ those looking to re-mortgage and first-time buyers.
Re-mortgaging saw a 53% year-on-year rise in valuations in October, a 25% growth in buy-to-let valuations and 21% increase in first-time buyer valuations, according to data by Connells Survey and Valuation.
