The latest data from the Council of Mortgage Lenders (CML) has shown that the rapid growth of mortgage lending slowed down as the summer ended. This is a historically seasonal trend and the summer lull in the mortgage lending market for this year was no different. That trend though is expected to come to an end and lending will likely pick up as the Bank of England draws closer to increasing the standard base interest rate.

CML reported that mortgage lending fell by 9% in August at £19.7 billion from July. However in a year on year comparison there was a 10.7% increase over the data collected for August 2014.

First time buyers showed up for mortgages at a value rate of 5% more than the same period last year. Home movers borrowed an amount of 8% more than August 2014 and home owners borrowed at a value increase of 20% for remortgages.

Investors for buy-to-let mortgages showed continued strong demand which is worrying to many experts. There is a fear that when interest rates increase or house prices decline that landlords will sell and that will push house prices to decline quickly harming the economic growth progress currently at work. Landlords in August borrowed £1.4 billion for properties which is an increase of 40% compared to last year and they borrowed £1.9 billion in remortgages which is an increase of 73% in comparison to August 2014.

Lenders are showing signs that they are still deeply engaged in a competitive environment. They are opening up to higher loan to value ratios, offering low interest rates on deals, and doing their best to offer incentives to get the attention of borrowers seeking a mortgage or remortgage. This will help build the momentum expected to push the mortgage lending market out of the summer lull to finish strongly through to the end of the year.