Gross mortgage lending in the UK reached £19 billion in October, according to figures released by the Council of Mortgage Lenders (CML).
This is 5 per cent higher than in September, and up by 8 per cent on October last year.
This is the highest lending total for an October since 2008, when £18.6 billion was lent.
This goes against some expectations, as people thought that the mortgage lending restrictions that came into force earlier this year as a result of the mortgage market review would drastically reduce the amount of people who were able to get mortgages.
Economist Mohammad Jamei said, “As the temporary impact of implementing the mortgage market review fades, a clearer picture of the mortgage and housing market is emerging. Nearly all indicators in the housing market align with our view of a gentle easing in market conditions.”
He added, “While the housing market has cooled in recent months, mortgage lending continues to be underpinned by positive factors. With expectations of the first interest rate rise moving to the fourth quarter of next year, as well as positive forecasts for growth, pay and unemployment, there is potential for market activity to gain traction in the New Year.”
It is thought that the predicted interest rate rise will not happen early next year, as predicted, and is now thought to come in the latter half of 2015, leaving current mortgage rates at an all time low.
For now, the market seems to be steadily increasing, and may continue to do so until the interest hike predicted next year.