There was an estimated £17 billion of gross mortgage lending in November, according to the Council of Mortgage Lenders. This was 4% lower than October’s figure of £17.6 billion but 30% higher than the £13 billion lent in November last year.
CML chief economist Bob Pannell said:
“Gross lending for 2013 looks set to reach £170 billion – higher than the £156 billion we originally forecast, but still a far cry from the £363 billion experienced at the height of the lending boom in 2007. New rules hardwire in a more risk-averse lending environment for the future and so, while we expect lending to rise in line with better economic conditions, the next two years are unlikely to see lending levels getting very far above £200 billion a year.”
Ashley Brown, director, independent mortgage broker, Moneysprite, commented:
“What a difference a year makes. A 30% annual increase underlines the extent of the recovery of the mortgage market.
“However, when you think that gross lending in 2013 is still likely to end up nearly £200m below that of 2007, you get an idea of just how far things fell.
“It feels like a booming market but we are still way below the historical norm. That’s how bad things got.
“Lending conditions do look set to get slightly tougher during 2014, and rates will only be going one way, which will act as a natural check on overall loan numbers.
“But sensible lending conditions are no bad thing and are essential if we want a long-term, sustainable market.
“There will almost certainly be another dip in December but then I expect a strong first quarter, as people continue to make the most of the current mortgage deals that are now widely accepted to be living on borrowed time.”