The Council of mortgage Lenders (CML) has estimated that the gross mortgage lending for September reached £17.8 billion.
Although one percent down on the £18 billion seen in August, is still ten percent higher than September 2013 when it stood at £16.2 billion.
The CML goes on to say that gross mortgage lending for 2014 quarter three was therefore an estimated £55.5 billion, an 8 percent increase on quarter two and 13 percent up on 2013 quarter three.
CML chief economist Bob Pannell commented:
“Uncertainty over when we will see the first increase in UK base rates is exacerbated by weaker growth prospects in several major economies, including the eurozone.
“Recent indicators and policy actions corroborate our view of a gentle easing in market conditions. There is growing evidence that mortgage lending activity, and the housing market, are sitting on a plateau."
Andy Knee, chief executive of LMS, said:
“The overall picture of the housing market shows that lending is still up from last year, but stricter lending criteria and increasing apprehension surrounding affordability has led to a slight slowing of the market with lending down by 1% from last month.
“This further evidence of a cooling in the market should provide some much needed relief for first-time buyers who could experience reduced competition in purchasing a home and a slower ascension of house prices as a result. Lender appetite also remains healthy, as long as hopeful buyers meet their lending criteria.
“However, buying a house remains no mean feat and for more people to stand a chance of entering the market place, schemes such as Help to Buy are critical in offering a helping hand to get more young people onto the property ladder. Assistance to aspirational first-time buyers has therefore improved their chances of buying a home but should not be curtailed too soon.
“The situation for home owners hoping to secure a new mortgage has also improved, as with house price rises, fewer are trapped by the burden of negative equity. Many previously limited by their current deals have seen their options improve no end. Remortgagors should consider taking advantage of the lower rates available to them now as uncertainty ahead of the election and the prospect of a base rate rise early next year may reduce the competitive offers and limit lender appetite.”