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Quote Ref: UKIN01

Buy-To-Let Lending Value Increased By 57% In April 2014

Man speaking to a woman about buy to let lending
02 July 2014

By UKinsuranceNET In Landlord Advice

New data released by the Council of Mortgage Lenders (CML) on the profile of mortgage lending in the UK during April 2014, including buy-to-let, first-time buyer, home mover, and remortgages shows:

• Buy-to-let loans compared to April 2013 showed a 43% increase in the number of loans being completed and this showed that the overall buy-to-let lending value increased by 57% in April 2014.

• First-time buyers rose by only 1% in April compared to March, but this was nearly 40% up on April 2013.

• Home movers increased in April and again compared to April 2013, overall growth was up by over 30% in volume and 47% in value.

Another report from The Bank of England earlier this month showed that gross UK mortgage lending had increased to £16.5 billion in April, which was 35% higher than the £12.2 billion total for April last year.

Lending for buy-to-let in April 2014 for over 16,000 completed mortgage loans amounted to £2.2bn. This figure was almost identical to March 2014, but significantly this was up by over 40% by volume and up by nearly 60% by value compared to April last year.

The breakdown of buy-to-let loans shows as follows, 8,400 of these were for new house purchase, with remortgages accounting for over 7,500 loans. These figures showed that the number of buy-to-let new loans were nearly 50% up on April 2013. When it comes to loan value new loans totalled over a £1bn in value, and more significantly this increase was over 60% up on April last year.

Remortgage loan numbers for buy-to-let were up nearly 40% on April last year. However the total value of these loans at £1.2bn was 60% up compared to April last year.

Paul Smee, director general of the CML, commented:

“First-time buyers and home movers continue to be key drivers in the growth of the market and, despite fears that the momentum could be hindered, we have seen a continued year-on-year upward trend every month in 2014. The UK picture continues to mask a disparate set of varied local conditions, but overall we expect lending levels to continue to build on the foundation of growth we have seen over the past 12 months.”

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