Mortgage lending hit 11-month high in October

According to estimates from the Council of Mortgage Lenders (CML), gross mortgage lending increased to £12.9 billion in October 2021, marking the highest level for 11 months.

This indicates a reversal in the sharp fall in mortgage lending seen in September - when the figure stood at £11.3 billion - and suggests a 4% year-on-year increase. Back in October 2011, gross mortgage lending stood at £12.3 billion.

Bob Pannell, CML chief economist, commented that this shows signs that the weak housing market we've seen in recent months could be on the road to recovery. He said: "House purchase and remortgage activity both appear to have picked up recently, and this should be supported by an improvement in the availability and pricing of mortgages.

"The Funding for Lending Scheme is likely to have made an early positive impact, helping to counter some of the negative pressures associated with a protracted and weak economic recovery."

SPF Private Clients chief executive Mark Harris said that the increase could provide good news for 2013, as greater mortgage availability could help the rise in mortgage lending continue. He said: "The mortgage market may still be constrained when you compare it with what it was at the height of the housing boom but it is showing encouraging signs of easing."

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