CML: Gross mortgage lending hits a seven year high

Gross lending hit its highest level in over seven years in October, according to the Council of Mortgage Lenders.

Lenders advanced a total of £21.8bn in October, up 19% on the £18.4bn lent a year earlier and 8% on September’s total of £20.1bn.

October’s lending total is the highest since July 2008, when lenders advanced £23.6bn.

CML chief economist Bob Pannell says: “As lending in the regulated mortgage space picked up over the summer months, the pace of recovery has improved. This looks set to continue over the closing months of the year with the factors helping support this recovery continuing to be low inflation, strong wage growth, an improving labour market and competitive mortgage deals.

“As a result lending this year is likely to exceed our forecast of £209bn. Affordability pressures will limit business volumes for first-time buyers and movers meaning that we think the market has only modest further upside potential over the short-term.”