Mortgage lending is possibly seeing signs of further recovery, according to the latest figures released from the Council of Mortgage Lenders.  Lending increased by more than 4% in October compared to the same time last year.  September experienced a dip in lending, but October quickly put a reversal of that trend into motion.  Both mortgage and remortgage activity picked up during the month of October echoing the improvement in data the Bank of England has seen in the last few months regarding approvals.

Remortgage activity has been relatively subdued through the entire year of 2012, but the continuation of favorable deals for remortgages, especially for those homeowners with unfavorable SVR mortgages, seems to have improved the appetite overall in the last few months.

Bob Pannell, head economist for the CML, commented on the possibly encouraging signs the latest remortgage data indicates going into the near future, saying: “While this is from a low base, the Bank of England reported 28,000 remortgage approvals in September, it does suggest that remortgage activity may act as less of a drag on overall lending going forwards.”

He continued: “House purchase and remortgage activity both appear to have picked up recently, and this should be supported by an improvement in the availability and pricing of mortgages. The Funding for Lending Scheme (FLS) is likely to have made an early positive impact, helping to counter some of the negative pressures associated with a protracted and weak economic recovery.”

Debate continues over whether or not the FLS will influence the market in a positive way in the future, or if this is a sign of temporary relief.