The amount of home move loans, remortgages and buy-to-let mortgages arranged in February was down on January figures, Council of Mortgage Lenders reports.
The total number of loans advanced to home-owners for house purchase in February remained in line with January figures but increased 33 per cent compared with February 2013.
First-time buyers took out 22,200 loans in total in February, a modest increase in volume compared with January but up 41 per cent compared with February 2013.
Home movers took out a total of 26,200 loans for house purchase in February, down 2.2 per cent compared with January but up 27 per cent compared with February last year.
Paul Smee, director general of the CML, said: “We would expect a seasonal lending dip around this time of year. However, lending to both first-time buyers and home movers bucks this trend, continuing to show momentum.
“The substantial year-on-year growth shows how far the market has moved since the flat period experienced up until around a year ago.”
The total number of loans taken out by home-owners for remortgage fell in February by 15 per cent compared with January but still had a strong year-on-year increase up by 17 per cent compared with the same month a year ago.
Gross buy-to-let loans advanced decreased in February to 14,300 compared with 15,700 in January but there was a strong year-on-year increase in volume of 46 per cent compared to February 2013.
Mr Smee added: “The new regulation of mortgages that takes effect at the end of April is a significant change. The industry is ready for the transition, although there is clearly potential for lending to be distorted temporarily over the coming months, given the magnitude of the changes and the importance of complying with regulatory expectations.
“Overall, we expect to see continuing growth in mortgage borrowing ahead, within responsible lending parameters, as the pent-up demand of the recession years finds an outlet in a stronger market.”
