October lending rose by 19% year-on-year and 8% from the month before from £18.4bn in October last year and £20.1bn in September 2015.
The CML’s chief economist Bob Pannell said lending in 2015 is likely to exceed its forecast of £209bn, although due to affordability pressures first-time buyer and homemover lending is unlikely to rise significantly in the short-term.
Pannel added: “As lending in the regulated mortgage space picked up over the summer months, the pace of recovery has improved.
“This looks set to continue over the closing months of the year with the factors helping support this recovery continuing to be low inflation, strong wage growth, an improving labour market and competitive mortgage deals.”
Jonathan Harris, director of mortgage broker Anderson Harris, reckoned the challenge of raising a deposit for first-time buyers is the only thing stopping the market from getting out of control.
He said: “Mortgage brokers are certainly busy as borrowers increasingly turn to an intermediary to help navigate the post-Mortgage Market Review world with its many challenges.
“Those who can jump through all the necessary hoops will be rewarded with some very competitive rates indeed - a trend which shows no signs of abating as lenders vie for business and interest rates look set to remain low.
“The biggest challenge for borrowers is meeting lenders’ affordability criteria, as property prices continue to rise in many areas while wages fail to keep pace.
“First-time buyers will find it difficult to get themselves in a position to buy unless they have assistance from the Bank of Mum and Dad. This should keep a lid on the market and ensure we don’t return to runaway growth.”
