Buy To Let Mortgage Lending Increasing Steadily

Wednesday, April 22, 2015

Buy To Let Mortgage Lending:
Steady Year-On-Year Rise

Buy To Let Mortgage Lending: Steady Year-On-Year Rise

Buy To Let Mortgage Lending: Steady Year-On-Year Rise

New data published by the Council of Mortgage Lenders has revealed despite a fall in the volume of buy to let mortgage loan advances in February 2015, annual lending is continuing to increase steadily.

There were a total of 15,900 buy to let mortgage loan advances made by lenders in February 2015, a drop of 13% when compared to the volume of advances observed in January 2015, but these figures are still up 11% on the volumes being approved a year earlier.

The Council of Mortgage Lenders membership is made up of banks, building societies and other lending organisations who together undertake around 95% of all residential mortgage lending in the UK. At the present time there are approximately 11.1 million mortgages in effect in the UK worth over £1.3 Trillion (GBP).

The data reveals that the value of the buy to let mortgage loans totalled £2.2 Billion (GBP), down 12% from January this year but 16% above the amount loaned to landlords and property investors in February 2014.Buy-to-let remortgaging has observed a similar trend, with the volume of loan advances falling 19% in February 2015 compared to the previous month, totalling 8,400 remortgage advances, whilst remaining 23% up on the February 2014 total volume of buy to let remortgaging.

The value of these loans totalled £1.3 Billion (GBP) which is 31% up on the value of advances made in February 2104.

Director General of the CML, Paul Smee, said: “Buy-to-let, in contrast, has shown year-on-year lending increases, due almost completely to remortgaging which is typically strong in the buy-to-let market. This month we launched the CML buy-to-let statement of practice which reflects what responsible lenders already do and offers a clear explanation of how buy-to-let lenders operate. We hope it will help in people’s understanding of the buy-to-let lending environment and the transparency of the statement of practice can give confidence to landlords that clear and consistent lending policies are being undertaken.”

Buy To Let Mortgage Lending Increasing SteadilySource: CML

Loans for buy-to-let house purchase and remortgage

   Number of Gross BTL advances in period Value of Gross BTL advances, £m   Number of BTL house purchaseloans Value of BTL house purchase loans, £m Number of BTL
remortgage loans
Value of BTL remortgage
loans, £m
February 2015 15,900 2,200 7,400 900 8,400 1,300
Change from
January 2015
-12.6% -12.0% -2.6% -10.0% -19.2% -13.3%
Change from February 2014 11.2% 15.8% 0.8% 3.4% 22.8% 31.3%

Buy-to-let data is sourced from a sample of CML members and has been grossed to estimate the industry total.


This was written by Mike Clarke. Posted on at 11:30 am. Filed under Buy To Let. Tagged , , , , , , , , , , , , , , . Bookmark the permalink. Follow comments here with the RSS feed. Both comments and trackbacks are currently closed.