CML reports significant rise in remortgaging

Posted on Tuesday, March 15 by Joy Tibbs

Remortgage lending to homeowners saw substantial increases month-on-month and year-on-year in January, according to the Council of Mortgage Lenders (CML). This resulted in the highest lending borrowed for remortgage in a single month in the UK since January 2009.

Homeowner remortgage customers borrowed £5.8 billion, up 35% on December and 32% compared with a year ago. The number of loans totalled 33,100, up 28% month-on-month and 19% compared with a year ago.

Landlords borrowed £3.7 billion in January, up 9% month-on-month and 42% year-on-year. The number of loans totalled 23,100, of which 13,400 were for remortgage, up 3% compared with December and up 31% compared with January 2015.

Homeowners borrowed £8.4 billion for house purchase in January, down 25% month-on-month but up 12% year-on-year. The number of loans totalled 46,200, down 27% on December but up 5% on January 2015.

First-time buyers borrowed £3.3 billion in January, down 27% on December but up 14% on January 2015. The number of loans totalled 21,400, down 28% month-on-month but up 6% year-on-year.
Home movers borrowed £5.1 billion, down 24% on December but up 11% compared to the previous year. The number of loans totalled 24,800 loans, down 26% month-on-month but up 3% on January 2015.

Paul Smee, director general of the CML, said: “Stripping out the usual January lull we see a general picture of flat house purchase lending but a significant uptick in remortgage activity, as borrowers continue to seek attractive new deals despite the lower-for-longer expectations for interest rates.”

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