Mortgage approvals and gross lending have hit new heights, according to latest CML figures, and industry analysts expect the good news to continue into next year.
Gross mortgage lending dipped 1.2% to £16.2 billion in September, but was still 41% higher than in September 2012, when it stood at £11.5 billion.
Lending for Q3 2013 was an estimated £49.3 billion, the highest quarterly amount since Q3 2008. This figure is up 17.6% on Q2 and 32% on the same quarter last year.
Brian Murphy, head of lending at Mortgage Advice Bureau (MAB), said growing buyer demand should continue into 2014: “Both mortgage approvals and gross lending are hitting heights not seen since 2008, painting a picture of a thriving and increasingly accessible mortgage market.
"We have already seen more mortgage applications this year than in the whole of 2012, and the fall in fixed rates over the last 12 months mean that buyers can save as much as £1,080 on their annual mortgage payments.*
“With increasing mortgage product availability and competition between lenders, homebuyers with a deposit saved can enjoy an Indian summer in the property market.
"Confidence is the key and the Help to Buy scheme should stimulate consumer demand to the end of the year and beyond."
Richard Sexton, director of e.surv chartered surveyors, said: “There has been a quantum leap in mortgage lending in the space of less than 12 months. House purchase lending is at its highest for 68 months, and high LTV lending is 60% higher than this time last year.
"The whole market has moved out of the shadow of the financial crisis, and the sun is beginning to shine on borrowers again.
"Mortgage rates are likely to remain at rock-bottom for the next three years, lenders are more willing to advance high-LTV loans, and Help to Buy will open the door to borrowers who are struggling to build a deposit.
“But it’s not an entirely rosy picture. The recovery has come on the coat tails of a booming London market. Elsewhere, the recovery has been much more muted."
Mark Abrahams, director of West One Loans, said that despite the small monthly stumble in September, these are exciting times. "The economy looks healthier than it has for years, but there's no room for even a hint of complacency given the scale of the work that still needs to be done.
Paul Hunt, managing director of Phoebus Software, said: “It’s great to see so many new signs of life in the housing market. While the economy continues to grow, the whole market is gaining strength and lending should continue to rise.
"It’s clear conditions have eased for borrowers. Lenders are being proactive in their approach to advance high-LTV loans. On top of this, Help to Buy will support masses of borrowers who are struggling to save up for a deposit.”
David Newnes, director of LSL Property Services, said: “We’re starting to see mortgage lending plateau following a barnstorming surge over the past nine months. The recovery is now entering a more mature phase.
"We’ve been spoiled this year, and have come to expect big month-on-month increases in mortgage lending. Those leaps are probably a thing of the past. But lending should continue to inch upwards as long as the economy continues to grow."
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