Mortgage lending up five per cent

Call for new products for older borrowers

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Mortgage lending totalled £19 billion in October, according to the Council of Mortgage Lenders, five per cent higher than September and eight per cent higher than October 2013.

CML economist Mohammad Jamei said that the market is in a steadier state than it was earlier in the year.

"As the temporary impact of implementing the mortgage market review fades, a clearer picture of the mortgage and housing market is emerging," he added. "Nearly all indicators in the housing market align with our view of a gentle easing in market conditions."

Jonathan Harris, director of mortgage broker Anderson Harris, said that the results 'make for a more sustainable and healthy market, free from boom and bust'.

"With the Bank of England suggesting that the first interest rate rise won't be until the end of next year, at the earliest, this will boost activity in the mortgage market," he said. "Many lenders are cutting their rates in an effort to generate more business, particularly as the introduction of the mortgage market review slowed things down earlier this year. There are some great mortgage offers around for those buying or remortgaging, and this will continue well into next year.

"All we need now is for lenders to come up with innovative products that will solve some of the issues created by MMR. In particular, something directed at older borrowers who are struggling to get a mortgage, remortgage or even guarantee a child's mortgage because of their age."

Commenting on the figures, Henry Woodcock, Principle Mortgage Consultant at IRESS, said that talk of a prolonged slowdown in the mortgage market was premature.

"Demand from house buyers and re-mortgagors is still strong, and this is being matched by the availability of finance," he said. "Yes, lenders are still adjusting to the MMR, although this is still is a decreasing factor. Yes, uncertainty over interest rates is resulting in more caution from many prospective buyers. But the long-term picture looks positive. "