This is only a slight change to August's gross lending total of £16.4 billion and is 41% higher than September last year (£11.5 billion).
Gross lending for the third quarter of 2013 was an estimated £49.3 billion. This represents a 17.6% increase on the second quarter of 2013 and a 32% increase on the third quarter of last year.
This is the highest lending amount by quarter since quarter three of 2008.
CML chief economist Bob Pannell 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."
David Copland, director of mortgage services for LSL’s financial services division, said: “Help to Buy 2 has certainly increased enquiry levels and brokers are finding that they have other solutions at disposal that compliment the Help to Buy scheme, including an increase in the number of 95% LTV mortgages that are being launched by some of the smaller building societies outside of the Help to Buy scheme.
“Whilst innovative products such as the family springboard and guarantor schemes have been around for some time it has been the publicity surrounding Help to Buy 2 at has made the public realise that they can get on the property ladder or move home.
“I expect to see many lenders with their foot on the gas for the balance of 2013.”
Sophie Hall, head of intermediary at Avelo, said: “The mortgage market is in fine fettle at the moment. Help to Buy is providing a platform for first-time buyers to secure high LTV mortgages, and we have yet to see the impact of Help to Buy 2.
“With house prices rising, demand is still strengthening, and prospective buyers are increasingly confident in the direction of property values. Would-be buyers in many parts of the country are no longer facing the prospect of their new home losing value following their purchase, bolstering confidence.
“While house prices hitting a new high will boost buyer appetite, affordability is a potential fly in the ointment. Government schemes are helping buyers access mortgages but brokers will need to keep affordability in mind, especially with the MMR being implemented next year.”
Paul Hunt, managing director of Phoebus Software, added: “There has been a conspicuous leap in mortgage lending over the past nine months.
“It’s great to see so many new signs of life in the housing market which has been static for a while. While the economy continues to grow the whole market is gaining strength and lending should continue to rise.”
But Mark Abrahams, director of West One Loans, sounded a caution, and said: "Compared to the drought of the last few years a wave of new borrowers are experiencing a mortgage monsoon. Despite a small monthly stumble in September, these are exciting times. More widely, the economy looks healthier than it has for years. But there's no room for even a hint of complacency given the scale of the work that still needs to be done."
Richard Sexton, director of e.surv chartered surveyors, added: “There has been a quantum leap in mortgage lending in the space of less than twelve months.
"House purchase lending is at its highest for 68 months, and high loan-to-value lending is 60% higher than this time last year.
"The whole market has moved out of the shadow of the financial crisis and the sun is beginning to shine on borrowers again.
"Mortgage rates are likely to remain at rock-bottom for the next three years, lenders are more willing to advance high LTV loans, and Help to Buy will open the door to borrowers who are struggling to build a deposit.
“But it’s not an entirely rosy picture. The recovery has come on the coattails of a booming London market. Elsewhere, the recovery has been much more muted. House price rises and mortgage lending in the North have been modest – in many regions the recovery has barely even begun and is fragile.
"Inflation is gnawing away at people’s personal finances and wages are falling in real terms, which makes building a deposit a painstaking task.”
The Bank of England today also released data on lending, which showed that the stock of lending to small and medium-sized enterprises, as well as to large businesses, contracted in the three months to August. Karen Bennett, sales and marketing director, commercial mortgages, Shawbrook Bank, said: “Today’s figures reflect recent feedback from our brokers that suggests SME clients continue to be pessimistic about accessing finance from the high street banks.
"This pessimism hasn’t improved even with the government’s continued attempts to stimulate lending with various schemes. There is good news though, specialist lenders like Shawbrook are demonstrating a real appetite to lend and are bucking this trend. The challenge is to continue spreading the word that there are options beyond the high street lenders and we believe brokers will continue to have a key role to play in this.”
