Homebuyer loans hit 18-month high in September

The number of loans for house purchase grew by 6% last month to 56,215, the highest monthly figure since March last year, according to the latest Bank of England figures.

The data showed that £7.6bn was lent in September, up from £7.3bn in August, also an 18-month high, and more than double the amount seen in the depths of the credit crunch last November.

This rise in lending was, however, offset by a fall in the amount and value of remortgaging.

Council of Mortgage Lenders economist Paul Samter said the data showed clear evidence of a significant pick-up in lending activity in the housing market from a year ago, despite remaining low on a historic comparison.

He said: “Overall, the numbers support our view that housing market activity continues to strengthen. But we are cautious about how far we can expect it to continue increasing, with funding still a challenge and the economic outlook still subdued.”