Mortgage lending rises to £20 billion in September

Britons are pumping ever more cash into their homes as mortgage lending topped £20 billion in September, figures show.

That is £200 million more than in August and £2.2 billion above last September's total, as cheap deals and low inflation leave people feeling confident enough to borrow bigger sums.

Monthly figures can sometimes be erratic, so it is worth noting that quarterly figures paint the same picture.

Gross lending between July and September stood at £61.4 billion, according to the Council of Mortgage Lending (CML). This is 18% higher than the £52.2 billion figure from the second quarter, and 12% higher the third quarter in 2014, when lending totalled £55 billion.

CML economist Mohammad Jamei said he expects lending to slow towards year end as more people finally hit the limit of what they can afford to borrow.

"Mortgage lending is currently enjoying its best spell since 2008," he said.

"As we expected, the second half of 2015 has seen a pick up in activity in the housing market after a slow start to the year. Low inflation, strong wage growth, falling unemployment and competitive mortgage deals are all helping to support housing demand.

"We expect to see further modest growth towards the end of the year, although affordability pressures are likely to limit gains for home movers and first-time buyers."