Total lending is now on course to reach £270 billion in 2003, compared to £219billion in 2002.
Loans for house purchase remained buoyant for the third consecutive month, at £11.9 billion – and reached a new
quarterly record of £35.2 billion. However, the total for the first nine months of the year (£84.5 billion) is lower than for the same period in 2002 (£87.2 billion). That illustrates how lending for house purchase in the last three months is in sharp contrast to the picture earlier in the year. It also reinforces that, over the year so far, it is the continuing buoyancy of remortgaging that has driven overall lending figures.
In September, 31% of loans for house purchase were taken out by first-time buyers, a recovery from the low point in August, but lower than the September 2002 figure of 38%.
Commenting on the figures, CML Director General Michael Coogan said: “Lending activity shows no signs of slowing in the near future, with the July cut in interest rates having given renewed buoyancy to the mortgage market. We expect lending to remain strong for the rest of this year - and into next year - until the impact of predicted increases in interest rates feeds through. While mortgages remain affordable, borrowers on variable rates need to plan ahead for higher borrowing costs."
