CML: Gross lending up 29pc year-on-year

Gross mortgage lending in July rose by 29% to £16.6bn compared to the same month last year which saw £12.9bn lent out, estimated figures from the Council of Mortgage Lenders showed.

Compared to the previous month estimated gross lending rose by 12% from £14.8bn representing the highest monthly estimate for gross lending since October 2008 which reached £18.6bn.

The CML’s market and data analyst Caroline Purdey said: “An improvement in sentiment and activity continues to show in the UK housing and mortgage markets with a more positive picture also starting to emerge in the economy.

“Our forward estimate of gross mortgage lending in July reinforces a growing evidence base of a strengthening in the housing and mortgage markets.”

Richard Sexton, director of e.surv chartered surveyors, said: “The mortgage market has been the pillar of the economic recovery. The freeze on high loan to value mortgages has thawed and first-time buyer lending is at its highest since the banking crisis.

“Rates are at record lows and there are wider range of deals for borrowers to choose from than at any point since 2008.”

Sexton said this was not surprising as the mortgage market had received much more help and attention from the government than other areas of the economy.

Brian Murphy, head of lending at Mortgage Advice Bureau, said: “Additional funding through government initiatives has caused lenders to compete for business in order to catch ambitious lending targets. Since the start of the Funding for Lending Scheme rates have fallen by one percentage point across 2, 3 and 5-year fixes. The market is certainly ripe for picking with the best choice of products and deals for years.

“Investing time to weigh up the options can really pay off in the long term”

Mark Harris, chief executive of mortgage broker SPF Private Clients, added: “Increased confidence among buyers, with regard to their ability to get funding at competitive rates, is persuading more people to take the plunge and get on the housing ladder for the first time or move up it.

“Help to Buy, Funding for Lending and more recently the Bank of England’s Forward Guidance are all contributing to boost confidence in the market.”