Lending secured on dwellings increased by £3.6 billion in February, in line with the average over the previous six months - gross lending secured on dwellings was £21.0 billion and repayments were £17.1 billion.
The number of loan approvals for house purchase was 73,871 in February, with approvals for remortgaging at 40,749 - broadly in line with the average over the previous six months. The number of approvals for other purposes was 12,514, compared to the average of 12,103 over the previous six months.
Richard Sexton, director of chartered surveyor e.surv, comments:
“The start of the year has seen a sustained momentum in house purchase lending, fuelled by the force of buy-to-let lending. February in particular saw a surge of buy-to-let activity as a result of the race to beat stamp duty changes – coming into force tomorrow.
“Many fear this driver for lending activity may die down after April and some fall away appears likely. However, while buy-to-let may be the taking a lead role in the lending market at the moment, small-deposit borrowing and remortgaging are also reaping the rewards of a warm economic climate.
“With an interest rate rise seemingly a long way off, and even a further cut possible this year, low mortgage rates and a wide range of available mortgage products are bringing flexibility. Borrowers may be facing higher prices and higher deposit costs, but they are benefitting from low inflation and rising wages. Consumer competition remains high to grab the best property deals – but house purchase lenders are showing no signs of cold feet and remain bullish regarding the rest of 2016."
