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Posted by Let Alliance on April 22, 2014
Here is the latest Buy to Let lending report from the Council of Mortgage Lenders.
Buy-to-let lending was also affected by seasonal factors in February with gross buy-to-let lending totalling 14,300 loans advanced, which was down 9% compared to January but up 39% compared to February 2013. The value of these loans totalled £1.9bn, which was again a decrease compared to January down 10% but up 46% compared to February 2013.
Similarly, buy-to-let lending for house purchases decreased to 7,500 loans advanced, down 7% compared to January but up 37% compared to February 2013. The loans totalled £900m in February, which was unchanged from January but up 58% compared to the same month last year.
Buy-to-let remortgage lending also decreased month-on-month to 6,600 loans, down 12% in volume compared to January but up 41% compared to February 2013. These buy-to-let remortgages had a total value of £1bn, down 9% compared to the previous month but up 64% compared to February 2013.
Chart 5: Number of buy-to-let loans advanced for house purchase and remortgage per month
Paul Smee, director general of the CML, commented:
“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.”