The trade boday says the massive fall was to be expected on basis that in 2009 there was a sudden rush at the end of the year as house buyers tried to beat the deadline for the end of the Labour government’s Stamp Duty holiday.
But compared to September 2010 remortgages were down 9% and house purchases fell by 4%.
There were 17,000 loans to first-time buyers in October, 5% less compared to September and down by 20% year-on-year.
Michael Coogan, director general of the CML, says: “With 2009 lending levels artificially inflated by the end of the stamp duty holiday, we expected to see a decline in lending year-on-year, so today’s figures are not surprising.
“Consumer confidence has also been affected by October’s spending review, despite the relative affordability of monthly mortgage payments, and so a stable but small lending market will continue for some time to come.”