Slight falls in lending to some groups of new borrowers were tempered by comparable rises to others leading to a flat mortgage market in September, according to new data from the Council of Mortgage Lenders.

There were 50,000 loans for house purchase (worth £7.4 billion) advanced in September, unchanged by volume but down £0.2 billion in value from August. The number was down 1,000 from September 2009 but the value was up £0.3 billion.

Loans for remortgage increased from 25,000 (worth £3.2 billion) in August to 29,000 (worth £3.6 billion) in September. Remortgaging accounted for 29% of total lending in September, the first proportionate increase since May. Despite this rise, there is still little incentive for borrowers to move away from low reversion rates with interest rates remaining low. This, coupled with an inability for some borrowers to access new refinancing deals means there is little prospect of a significant rise in remortgaging in the coming months.

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Article by the CML.
Data sourced from the CML/BankSearch Regulated Mortgage Survey.