Mortgage lending up 8% in October

The number of loans taken out for house purchase rose 8% compared with October 2014.

The number of first time buyers taking out loans also rose with an 8% rise month to month, or 3% year on year, according to information released by the Council for Mortgage Lenders (CML).

In total £7.1 billion was borrowed meaning a rise of 8% on September and a 13% rise on October last year.

There was also growth in the number of buy-to-let mortgages with the number of buy-to-let mortgages rising by 4% on September and the value of those mortgages rising 4%

Paul Smee, Director General of the CML said: “Home owner and buy-to-let activity have both continued the upward trend seen last month, and the market looks set to finish the year strong, despite taking time to gain momentum after a slow start to 2015.

“With increasing employment and the current absence of inflationary pressures in the UK, conditions for continuing demand in the housing market seem likely going into the new year. How supply will respond to this challenge going forward is a crucial question for 2016.”

According to information released by the CML, buy-to-let is currently at its highest level for some time.

The release from the CML said: “Gross buy-to-let lending increased substantially in October, up by volume and by value in comparison to the previous month and the same time last year.

“This is the highest monthly gross buy-to-let lending level by value and by volume since we began tracking buy-to-let data on a monthly basis in January 2013. Buy-to-let remortgage is currently driving this with larger year-on-year growth compared to October 2014.”

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