19 Nov

Gross mortgage lending rises in October

Gross mortgage lending rises in October

Gross mortgage lending increased by five per cent in October compared with the previous month, according to figures released by the Council of Mortgage Lenders (CML).

The CML estimated the value of that lending to be approximately £13.5 billion.

However, it cautioned that levels were still significantly lower than in 2008 - gross lending in October last year stood at £18.5 billion, 27 per cent higher than its current status.

In a statement accompanying the data, the CML said that the type of lending had changed substantially since the beginning of 2009.

Paul Samter, an economist at the CML, commented: "House purchase activity has picked up significantly. By contrast, remortgaging has dropped to decade-low levels."

Financial services company Scottish Provident welcomed the report. However, in a warning to buyers and homeowners, it urged people to take out relevant financial protection.

The company warned that serious illness or redundancy could have a devastating effect on anyone who needed to make repayments on a mortgage but was unable to earn enough to so.

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