Net secured lending rose by just over £3bn in the three months to October, compared with just £443m in the previous three-month period.
Although these numbers are well down on the level of lending seen at the height of the boom in the market, it suggests that the lending situation is improving. However, remortgaging remains subdued with the number of deals falling again as interest rates remain low and borrowers stick with their lender's standard variable rate, rather than remortgaging to a higher fixed or discounted-variable rate.
With the Chancellor delivering his pre-Budget report next week, the market desperately needs some measures to help improve liquidity and encourage lenders to do more lending.