Lending up above seasonal average

Gross mortgage lending rose in October despite the country being preoccupied with the effects of the credit crisis, figures from the Council of Mortgage Lenders (CML) have found.

However, despite the six per cent month on month increase - up on the seasonal average increase of three per cent, according to the CML - the organisation believes that the majority of completed deals were made before funding constraints tightened.

Nonetheless, gross mortgage lending stood at £32.4 billion last month, up from £30.6 billion in September, the report found.

"The next few months will be a testing time as ongoing pressures in financial markets feed through into the wider economy," acknowledged Michael Coogan, director general at the CML.

"The Bank of England's recent Quarterly Inflation Report reinforced the likelihood of a reduction in rates early next year, and that should provide some relief for borrowers sooner rather than later," Mr Coogan added.

First-time buyers are considering taking on second and even third jobs in an effort to fund their house purchases, Abbey revealed earlier this week.

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