Mortgage lending has increased by 41% between September 2012 and September 2013.
- £16.2 billion was lent to homebuyers in September
- This is an increase of 41% from September 2012
- £49.3 billion was lent during Q3 2013 – 32% higher than in Q3 2012
The amount of money being lent for mortgages has increased significantly between September 2012 and September 2013, according to the Council of Mortgage Lenders (CML).
It revealed that mortgage lending to buy a property in the UK was £16.2 billion last month, an increase of 41% on the figure 12 months before at £11.5 billion.
CML also reported that £49.3 billion was lent during the third quarter of 2013, which is a 32% growth on Q3 2012’s figure.
Chief Economist Bob Pannell for CML said: “Indicators suggest we are witnessing the strongest house purchase performance in five years.”
He went on to say property values have been boosted “modestly”, with this set to improve further with the assistance of the Help to Buy scheme becoming operational in January 2014.
This will see several lenders offer mortgages under the guaranteed scheme, allowing homebuyers to access mortgages with a loan-to-value of 95%.
Paul Smee, Director General of CML, said this will benefit the industry as it will provide security to lenders “making it more likely they will be willing to make loans to creditworthy borrowers with modest deposits”.
CML also reported that the money being lent for mortgages on UK property is the highest quarterly amount since Q3 2008, and an increase of 17.6% on 2013’s second quarter.