Data released today shows 44,000 mortgages were advanced in November, with a value of £6.3bn
According to the CML, both mortgage approvals and the value of loans advanced were unchanged in November, compared with October.
According to the CML data, 44,000 loans for house purchase, worth £6.3bn, were advanced in the month. This was unchanged from October but down 15% by volume and 13% by value compared to November 2009.
Loans for remortgaging were down compared to the same period last year (12% by volume and 14% by value) but they showed a small increase from 25,000 (worth £3bn) in October to 26,000 (worth £3.1bn) in November.
The recent Bank of England Lending to Individuals statistics showed a much larger increase in remortgage activity - from 29,200 loans in October to 36,300 in November. The bank’s figures are based on mortgage approvals, and therefore are a lead indicator of the CML figures which are for mortgage advances. This indicates there may be a further, more substantial increase in CML remortgage data in the coming months.
This confirms that while it is still difficult for first time buters to enter the market, those who already have mortgages are remaining active. It is this activity which has helped the listed housebuilders increase average selling prices in what is still a generally weak market.