CML: remortgage lending drives BTL sector

Posted on Tuesday, November 18 by Joy Tibbs

New data from the Council of Mortgage Lenders (CML) shows that 28,300 remortgage loans were advanced in September. This was a 20% rise compared with August figures but a 12% decline compared with September 2013. The value of these loans (£4.4 billion) was up 22% month-on-month but down 6% year-on-year.

The number of remortgage loans advanced during the third quarter increased by 2% to 77,200 compared with the previous quarter but decreased by 13% compared with the third quarter of 2013. In value terms, remortgaging was up 3% on the second quarter and 6% on the third quarter of 2013.

At 9,260, the number of buy-to-let remortgage loans increased significantly in September, up 26% on August and 35% compared with September 2013. The value of these loans was £1.4 billion, up 23% on August and up 38% on September 2013.

Paul Smee, director general of the CML, said: “We are approaching the end of 12 months of change, transition and growth. This has been a year when lenders and intermediaries have been put under increased spotlight from regulatory, political and media spheres and have risen to meet the challenges.

“The lending market is healthier than it was a year ago, and set to remain so. Remortgaging has returned as a driver of lending volume in the buy-to-let sector. But any fears of over-heating in the housing market are now dissipating as house purchase lending activity seems to be softening.”

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