Mortgages  

Home-owner lending is up but buy-to-let is down

Total home-owner house purchase lending continued to grow in August, up 7 per cent on July and 15 per cent on August last year.

First-time buyers took out 27,100 loans in August, an increase of 7 per cent on July and of 33 per cent compared with August 2012.

Home movers took out 34,200 loans, an increase of 7 per cent compared with July and up 5 per cent on August last year.

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Home-owner remortgage lending was 7 per cent down in August compared with July but was nearly 11 per cent up on August last year.

But total buy-to-let loans advanced decreased slightly to 14,900 loans in August, compared with 15,200 in July, with a value of £1.9bn.

Within this, 7,900 buy-to-let loans in August were for house purchase, up by 4 per cent compared to July.

Buy-to-let remortgage lending fell slightly to 6,900 loans in August from 7,200 loans in July.

According to the CML, the small fall in buy-to-let lending was caused mainly due to a fall in buy-to-let remortgage lending from £1.1bn in July to £1bn in August.

Paul Smee, director general of the CML, said: “The healthy growth in all lending areas compared to the same time last year is indicative of more confidence in the market.

“The high number of borrowers, in particular first-time buyers, opting for fixed rates reflects the attractive pricing currently on products which can provide helpful stability to borrowers for the next few years.”