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CML data shows house purchase lending on the up

13 March 2014

Last updated at 12:17

The Council of Mortage lenders have today released new figures on the profile of UK lending in January 2014.

These encouraging statistics show a healthy increase in lending year on year and are yet another sign of the market finally getting back on it's feet. The data includes information about first-time buyer, home mover, remortgagor and buy-to-let lending.

Lending for home-owner house purchase

• The total number of home-owner loans for house purchase in January 2014 was down 16% compared to December 2013 but up 30% on January 2013.

• Overall, 48,600 loans were advanced in January with a total in value of £8bn, which was a decrease of 14% in value on December 2013 but a 43% increase in comparison to January 2013.

Lending to first-time buyers

• The usual seasonal dip saw the number of first-time buyers and home movers fall in January compared to December 2013 but both increased substantially in comparison to a year previous in January 2013. 
• The total value of these loans was £3.1bn, down 16% on December 2013, but a year-on-year increase of 55% in comparison to January 2013.

Lending to home movers

• The number of loans advanced to home movers for house purchase totalled 26,800 in January, down 15% in volume compared to December but up by 25% compared to January 2013. 

Lending for remortgage

• Remortgage lending in January was up 10% in volume compared to December and also up 16% compared to January 2013.
• These 28,000 loans totalled £4.2bn in value, an increase of 11% on December and up 31% compared to January 2013.

Buy-to-let lending

• Buy-to-let lending for house purchase increased 11% in January in volume compared to December 2013. Buy-to-let remortgage lending also increased 6% compared to December.

Paul Smee, general Director of the CML, said of the statistics "January is always a subdued month in the mortgage market but the underlying trend and strong year-on-year growth across all borrower groups indicates a strong start to 2014 continuing the sort of lending levels seen throughout 2013. Lending to first-time buyers and home movers has continued its upward trend and this, coupled with the growth in remortgage and buy-to-let activity, would suggest that all parts of the market are open for business."

 

Source: Council of Mortgage Lenders

 

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