Quarterly gross mortgage lending has jumped by 32 per cent in the past year, the highest increase in such a timeframe since Q3 of 2008, according to the Council of Mortgage Lenders (CML). 
While lending fell slightly by monthly measures to £16.2 billion in September, from £16.4 million in August, last month’s figures were a significant 41 per cent higher than September of 2012.
Gross lending for the third quarter of 2013 was an estimated £49.3 billion. This represents a 17.6 per cent increase on the second quarter of 2013 and a 32 per cent increase on the third quarter of last year.
Speaking about the figures, CML chief economist Bob Pannell said: “Indicators suggest we are witnessing the strongest house purchase performance in five years. House prices too have revived but modestly, aside from a resurgent London market.
“With the Help to Buy mortgage guarantee scheme becoming fully operational in January and firms implementing the mortgage market review in April 2014, it may be several months into 2014 before we get a true gauge of the scale and reach of Help to Buy. For now, the scheme has launched against an already recovering UK housing market with several quarters of improving credit availability, growing competition, and strengthening demand.”
Paul Hunt, managing director of Phoebus Software said: “There has been a conspicuous leap in mortgage lending over the past nine months. It’s great to see so many new signs of life in the housing market which has been static for a while. While the economy continues to grow, the whole market is gaining strength and lending should continue to rise.
“We’ve started seeing impressive month-on-month increases in mortgage lending and high loan-to-value lending is 60 per cent higher than this time last year. Mortgage rates are set to remain low for the next three years.
“It’s clear conditions have eased for borrowers. Lenders are being proactive in their approach to advance high LTV loans. On top of this, Help to Buy will support masses of borrowers who are struggling to save up for a deposit.”
