These loans totalled £2.5bn in value - up 4% on November and 32% compared to December 2013.
Within this, buy-to-let loans for house purchase totalled 8,550 in December, which was up 1% on November and a 17% increase on December 2013. These loans totalled £1.1bn, an increase of 6% month-on-month and up 29% year-on-year compared to December 2013.
The number of buy-to-let loans advanced for remortgage declined month-on-month by 1% in December totalling 8,610 loans, but this was an increase of 20% on December 2013. The value of these loans totalled £1.4bn, up 2% month-on-month and an increase of 32% year-on-year.
There were 54,000 buy-to-let loans in the fourth quarter, representing lending of £7.7bn. The volume of loans increased 4% and value of these loans was up 5% compared to the third quarter. Compared to the fourth quarter 2013, there was a 16% increase by volume and 26% by value.
Within the overall total of buy-to-let loans in the fourth quarter, 26,700 were advanced for house purchase and 26,900 for remortgage. The number of buy-to-let house purchase loans increased by 1% compared to the third quarter and up 13% compared to the fourth quarter 2013. This totalled £3.3bn in value, up 1% on the third quarter and 21% on the fourth quarter 2013.
The number of remortgage loans increased in the fourth quarter, up 7% on the third quarter and 19% compared to the fourth quarter 2013. These loans had a total value of £4.1bn, up 10% on the third quarter and up 29% on the fourth quarter 2013.
Buy-to-let lending in 2014
Overall in 2014, gross buy-to-let loans totalled 197,700 and totalled in value at £27.4bn. This was an increase compared to the previous year of 23% by volume and 32% by value. Within this, buy-to-let house purchase lending totalled 100,100 loans and buy-to-let remortgage loans totalled 96,020.
The number of buy-to-let house purchase loans increased 21% compared to 2013 in volume and was up in value by 31% to total £12.2bn. The number of remortgage buy-to-let loans was up in volume by 26% year-on-year and totalled in value £14.3bn, an increase of 35% compared to 2013.
Paul Smee, director general of the CML, commented:
"In 2014, the mortgage market saw unprecedented change with the introduction of major regulatory reform but the market has adjusted and kept its stability throughout. There will be challenges in 2015, including preparation work on the European Directive implementation and a General Election potentially bringing new housing policies to be put in place. But the industry is stronger than a year ago and ready to meet the challenges going forward."
Mark Harris, chief executive of mortgage broker SPF Private Clients, says:
"While the mainstream mortgage market stutters a little, buy-to-let goes from strength to strength. Cheap rates, easing of criteria and poor savings rates combine to offer landlords a compelling investment opportunity."
