Remortgage activity up 37% year-on-year, reports CML

Posted on Monday, April 18 by Joy Tibbs

According to the latest figures from the Council of Mortgage Lenders (CML), remortgage activity totalled £4.8 billion in February, down 17% compared with January but up 37% year-on-year. The number of remortgage loans totalled 28,400, down 15% month-on-month but up 24% compared with February 2015 figures.

Homeowners borrowed £8.7 billion for house purchase in February, up 4% month-on-month and 21% year-on-year. Homeowners took out 48,000 loans, up 4% on January and 12% on February 2015.

First-time buyers borrowed £3.4 billion, up 3% on January and 21% on February 2015. The number of loans totalled 22,000, up 3% month-on-month and 11% year-on-year.

Home movers borrowed £5.3 billion, up 4% on January and 20% compared year-on-year. The number of loans totalled 26,000, up 4% month-on-month and 14% year-on-year.

Landlords borrowed £3.7 billion in February, flat with January but up 61% year-on-year. The number of loans totalled 23,700, up 1% compared with January and 47% compared with February 2015.

Paul Smee, director general of the CML, said: “In 2016, there have been substantial increases in house purchase and remortgage activity year-on-year. This reflects the sluggish market in early 2015, perhaps driven by election uncertainties.

“Buy-to-let has also seen substantial year-on-year increases, with particularly strong growth in remortgaging, a pattern which we have seen in the buy-to-let sector the past six months.

“Activity has been boosted by landlords seeking to complete purchases before tax changes in April. We do not expect activity to show such strong year-on-year growth later in the year.”

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