Brian Murphy, head of lending at Mortgage Advice Bureau, comments:
“The CML’s gross lending figures for September portray a mixed picture, with month-on-month lending down from August, but the Q3 figures were up on Q2.
“However, the September lending figures refer to completions which were hit by the usual summer lull and the effect of the London Olympics. In contrast, MAB found mortgage applications actually increased last month, up 1.9% on August. Application activity has been boosted by increased availability of competitive mortgage deals and the launch of the Funding for Lending Scheme, which has seen a number of lenders have now begun to engage with the higher loan-to-value sector again.
“Nevertheless, we still need to see more lenders moving up the LTV curve before there will be any sizeable increase in housing transactions.”