Remortgage activity “set to grow”, claims CML

Posted on Monday, October 24 by Joy Tibbs

The Council of Mortgage Lenders (CML) has estimated that gross mortgage lending in September totalled £20.5 billion. It believes remortgage activity will continue to grow in the coming months.

September lending was 7% lower than in August (£22.1 billion), but 2% higher than in September 2015 (£20.1 billion). This is the highest September lending figure since 2007, when gross lending reached £29.9 billion.

Gross mortgage lending for the third quarter of 2016 totalled estimated £63.6 billion. This was 11% higher than during the second quarter and 4% higher than during the third quarter of 2015.

CML senior economist, Mohammad Jamei, said: “Remortgage activity looks set to grow, helped by attractively priced mortgage deals encouraging borrowers to refinance. Prospects for house purchase activity continue to look slightly subdued, when compared to the same period a year ago.

“Despite this, housing market sentiment continued to improve in September, after recovering in August. As a result, we expect a modest rise in approvals, though at levels lower than seen earlier this year, as the lack of properties on the market for sale and affordability constraints continue to bear down on borrowers.”

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