CML reports annual rise in remortgage lending

Posted on Thursday, February 16 by Joy Tibbs

Homeowner remortgage activity fell 21% in volume and value in December compared with November lending figures, according to the Council of Mortgage Lenders (CML).

However, remortgage lending increased by 7% in volume and value compared with December 2015.

Homeowner house purchase lending totalled £11.6 billion in December, up 5% compared with November and 3% compared with December 2015. This comprised 63,600 loans, up 5% on November and 0.2% on December 2015.

First-time buyers borrowed £5.1 billion for homeowner house purchase, up 9% on November and 13% on December 2015. This totalled 32,000 loans, up 7% month-on-month and 8% year-on-year.

Home movers borrowed £6.5 billion, up 3% on November but down 3% year-on-year. This totalled 31,600 loans, up 3% month-on-month but down 7% compared to December 2015. 

Gross buy-to-let saw month-on-month decreases of 15% in volume and 7% in value. Compared with December 2015, the number of loans decreased by 21% and the value decreased by 18%. 

During the fourth quarter of 2016, homeowner remortgage activity totalled £16.6 billion, down 5% on the previous quarter but up 10% on the fourth quarter 2015. The number of fourth-quarter remortgage loans came to 97,500, down 3% on the third quarter but up 9% on the same quarter in 2015.

Paul Smee, director general of the CML, said: “2016 could have been a potentially destabilising year of regulatory and political change, but the mortgage market has been resilient and adaptable.

“Homeowner house purchase lending increased, though the buy-to-let sector’s positive lending performance has been driven primarily by remortgaging. We do not expect the market volumes to show a year-on-year increase in 2017 instead remain similar to that achieved in 2016.”

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