Mortgage lending increased by 6.5 per cent from £13.8 billion to £14.7 billion in October, according to the CML. And, this increase was largely led by the level of remortgaging due to the rate cuts, which increased to 33 per cent of total lending.
Michael Coogan, director general of the CML, said: "Mortgage lending increased in October after a lull in September. Lending levels are holding up but are lower than during the summer peak, which is to be expected at this time of year. It is still too early to tell how marked the effect of the slowing economy will be on mortgage lending, although the CML expects a cooler housing market in 2002. Consumers continue to show confidence in their personal finances. But, it is also important that they avoid over commitment, and plan for the future as we enter the Christmas period."
However, the BBA figures show strong growth as the current trend level in mortgage lending of £3.5 billion was easily transcended in October as total mortgage lending was just under £4 billion, which was only slightly less than the largest monthly total in August.
Peter Vipond, head of research and statistics at the BBA, said: "These latest figures underline the inherent strength of the personal sector borrowing. Interest rate cuts no doubt bolstered demand for mortgages, but together with increased personal borrowing there is a continuing picture of resilient consumer demand."
