Noted rise in mortgage lending

20/11/2009

The BBC reports that UK mortgage lending rose by 5 per cent in October compared with the previous month.

However, according to the Lenders Group, the £13.5 billion of gross mortgage lending recorded by the Council of Mortgage Lenders (CML) was down 27 per cent compared with a year ago.

The group said that the month-on-month rise in lending was typical seasonal activity.

But the type of lending has changed since the start of the year, with remortgaging at "decade-low levels".

The "Trends in Lending" report published by The Bank of England, confirmed that more mortgages were approved by major banks in October than in September.

CML economist Paul Samter said, "Recent weeks have provided some reasons to be more cheerful about the state of the UK economy and housing market. We are now likely out of recession,"

However, any future rises in mortgage lending were likely to the result of seasonal factors rather than a fundamental shift in sentiment, he said.

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