CML lending figures for October 2012

12 December 2012

Peter Williams, Executive Director of the Intermediary Mortgage Lenders Association (IMLA), comments on today’s CML lending figures for October, which show remortgage lending increased to £3.5bn from £3.2bn in September. House purchase loans rose by 14% month-on-month from 43,500 to 49,500: a 10% increase in activity compared with October 2011.

It appears the Government’s Funding for Lending Scheme (FLS) has provided a boost to the remortgage market, as lending has risen significantly for the second consecutive month. Homeowners are beginning to take advantage of new, competitive low loan to value (LTV) mortgages, and while we expect a seasonal lull in activity, this should be followed by further growth in the re-mortgaging and overall mortgage market in 2013.

Another cause for optimism is the noticeable increase in purchase lending, with activity comparing favourably year-on-year. After the drop in house sales during 2011, we anticipate this year’s total will easily break through the 900,000 mark for the first time since 2008.

Although a full recovery in the market will be no easy feat, competition has increased along with funding and there are signs of movement in the right direction. We are cautiously optimistic about 2013.

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