The level of mortgage lending rose in November last year with gross lending rising to £10.4bn compar...
The level of mortgage lending rose in November last year with gross lending rising to £10.4bn compared with £9.9bn in October, according to the CML and DETR.
Mortgage lending climbed slightly from £6.1bn in October to about £6.5bn in November, and the level of remortgaging remained constant at £3.2bn.
Peter Williams, deputy director general of the CML, said: "November's figures bears out the CML's view that the housing market has entered a steady period. Modest increases in lending are forecast to be accompanied by house price rises of about 6% in 2001."
The average new fixed rates fell from 6.41% to 6.25%, while the average new variable rates dropped from 6.14% to 6.07%. Fixed rate loans accounted for 31% of new loans taken out compared with 33% in October, and consequently there was a slight increase in the popularity of variable rate loans in November, rising to 69% of new lending. The latest figures from the British Banker's Association (BBA) show that mortgage lending rose by slightly more than £2bn, which was the largest monthly rise since August.
Tim Sweeney, director general of the BBA, said: "Following two months of relatively lower growth in the big banks' mortgage lending, November saw a return to the higher trend of the summer months."
The Building Society Association (BSA) also reported growth as gross advances amounted to £2.3bn in November, up from £2.2bn in October.
Adrian Coles, director general of the BSA, said: "The steady rise in building societies' gross advances for the third month in a row reflects recent industry reports of an underlying upward trend in house prices. It seems confidence has returned to a higher level in recent months."
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