The Council of Mortgage Lenders (CML) has estimated that gross mortgage lending totalled £19.9 billion last month.
This is 9% lower than October’s lending total of £21.9 billion, but 23% higher than the £16.1 billion lent in November last year.
Mohammad Jamei, CML economist, said: “Lending is set to finish the year stronger than it started, with the pace of lending recovering over the summer months. As we’ve said for the best part of 2015, lending continues to be supported by strong fundamentals, which are low inflation, strong wage growth, an improving labour market and competitive mortgage deals.
“Reflecting this recovery, we estimate lending this year to reach £214 billion, up from our earlier estimate of £209 billion. Looking ahead, upside potential appears limited as a result of affordability pressures and new supply challenges which will continue to weigh on activity.”
Steve Griffiths, head of sales and distribution at Kensington, added: “This nominal dip in mortgage lending compared with October’s figures is reflective of the seasonal fluctuations in the market which we tend to see in the run up to Christmas. That said, lending is still significantly up on last year as the combination of low inflation, low rates and rising wages has enabled more people to raise a deposit and get a foot on the property ladder. Economic conditions have clearly boosted people’s affordability, however it is also important to judge the health of the market by the way it caters for a diverse range of customers rather than just the top-line number.
“Identifying the needs of different groups of customer demographics and access to the mortgage market is particularly important given the current scale of house price inflation. For many, real life doesn’t fit a standard mortgage application due to the nature of their income or credit history. The FCA’s review into competition in the mortgage market will hopefully flag the importance of a diverse market that provides different types of borrowers the opportunity to access homeownership.”
