Gross mortgage lending in November was an estimated £17 billion, according to the Council of Mortgage Lenders (CML).
This was 4 per cent lower than October’s figure of £17.6 billion but 30 per cent 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.”
Paul Hunt, managing director of Phoebus Software said: “Without a doubt the mortgage market is turning a corner, and its fitness has been improving rapidly. The revival in lending to first time buyers towards the end of 2013 was particularly striking. Lending levels are up by 30 per cent compared to a year ago, a sign that there has been a significant jump in activity in the market. Lenders are cutting rates and making more money available to a wider range of borrowers.
“The Help to Buy scheme seems to be working effectively in boosting the number of first time buyers by extending a helping hand to lower equity buyers, and helping them build a deposit. Now that the Funding for Lending scheme has been axed, all eyes will be focussed on the Help to Buy scheme which will bring more energy into the lending market over the course of 2014. We’ve already seen a boost in attractive mortgage deals across the board, and as the market gains further momentum in the New Year, we should see more competitive rates reach a growing pool of borrowers.”
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