Net lending was also up 14 per cent at £4.1bn – compared with £3.6bn for 2014 to 2015 – representing a market shares of 21.2 per cent – down slightly from 24.8 per cent during the first half previous year.
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The CML said mortgage lending was likely to exceed its forecast of £209 billion this year.
The results were revealed less than 24 hours after the Council of Mortgage Lenders said that borrowing – aided by low interest rates and stronger employment and wage growth – was back at levels not seen since 2008 last month.
“Eyes are now turning towards end of year targets, fuelling interest rate competition between lenders – further stimulating borrower demand”.
“This has been driven by favourable market conditions”. Nationwide’s chief executive said the United Kingdom housing market was “healthy and strong”, with house price inflation at an annual rate of up to 4%, although there could be a cool-down in London.
“Borrowers are now able to take advantage of a growing number of highly competitive mortgage products, with the total number increasing 10 per cent between August and September alone. Existing mortgage borrowers can also benefit by swapping to a new product, with a few lender’s standard variable rates offering poor value”.
Elsewhere in the financial update, Nationwide recorded half year gross mortgage lending was up 14 per cent at £14.9bn, which boosted the society’s statutory profit before tax by 34 per cent to £802m and underlying profits for the six months was up 27 per cent to £801m.
There were more than 250,000 new accounts opened in the period, up 13 per cent.
“With mortgage rates and the cost of living so low, and confidence in jobs and the economy high, demand is understandably strong”.
“As lending in the regulated mortgage space picked up over the summer months, the pace of recovery has improved”.
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However, it believes market growth will be modest in the short term as affordability pressures will limit lending for first-time buyers and homemovers.
