October gross mortgage lending was £13.5 billion, a 5% rise from £12.9 billion in September but down 27% on £18.5 billion in October 2008, according to estimates from the Council of Mortgage Lenders.
The lender body says this is typical seasonal activity between September and October – the average monthly rise over the last decade has been 5%.
The annual comparison should start to improve a little in the coming months as underlying lending volumes dropped sharply in the latter part of 2008 and early 2009, it says.
The October outcome is in line with the CML’s updated forecast for gross lending of around £141 billion for 2009 as a whole. It expects some seasonal slowdown over the remainder of this year.
CML economist Paul Samter said: “There has been a significant change in the type of lending taking place from the start of the year. House purchase activity has picked up significantly. In contrast