The Council of Mortgage Lenders estimates that gross mortgage lending reached £17.8 billion in September down 1 per cent on August, but up 10 per cent on September last year.
Gross mortgage lending for the third quarter of this year was therefore an estimated £55.5 billion, up 8 per cent on the second quarter of this year, and 13 per cent higher than the third quarter of 2013.
The CML’s chief economist Bob Pannell says there’s growing evidence that mortgage lending, and the housing market, have plateaued.
“Uncertainty over when we will see the first increase in UK base rates is exacerbated by weaker growth prospects in several major economies, including the eurozone.
“Recent indicators and policy actions corroborate our view of a gentle easing in market conditions.”
Mark Harris, chief executive of mortgage broker SPF Private Clients, says that the September dip indicates buyers are concerned about the prospect of interest rate rises.
“There is also a sense that economic recovery in Europe is fragile at best, which does nothing for consumer confidence when it comes to committing to something as costly as a property purchase.
‘However, Swap rates have fallen since September, and this, combined with plummeting inflation, means it is unlikely that interest rates will rise ahead of the general election.
“Lenders who are behind target for the year as a result of the delays caused by the mortgage market review are cutting their fixed rates in order to catch up before the end of December and we expect this to continue as they look to develop a strong pipeline for next year.”
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