The CML reported that gross mortgage lending increased by 9 per cent in August from July to an estimated £27.5 billion while the BBA reported an increase in net lending to £4.3 billion.
Commenting on the figures for August, CML director-general Michael Coogan took the opportunity to dismiss predictions made earlier in the year that lending levels would decrease. “The doom-mongers’ prophecies look to have been wrong as lending has continued to strengthen over the Summer.
“Although the market remains far from spectacular in terms of transaction numbers and house prices, the prospect of a significant market correction is receding.”
“The fact that the housing market is holding up is likely to be welcome news for the Bank of England’s Monetary Policy Committee as it struggles to reconcile the very different pictures emerging from different sectors of the economy. We continue to expect a moderate market for the foreseeable future,” he added.
The CML further revealed that remortgaging levels reached their highest point since October 2003 as a result of lower interest rates and more competitive deals, in addition to many people coming to the end of previous deals. Remortgage levels for August increased from £10.2 billion in July to £11.7 billion in August, a leap of 15 per cent.
David Dooks, BBA director of statistics, said: “After fluctuations in June and July, August saw mortgage lending return to the very stable trend that we have seen throughout this year.”
