There were 18,100 buy-to-let loans in September, representing lending of £2.5bn. The number and value of these loans were up compared to August by 15% and 14% respectively. Compared to September 2013, this was a 24% increase by volume and 32% by value.
In the third quarter, the number of buy-to-let loans was 12% up on the second quarter and 18% up on Q3 2013. The value of these loans was 16% higher than the second quarter, and 28% up on Q3 2013.
Within the overall total of buy-to-let loans in September, 8,760 were advanced for house purchase and 9,260 for remortgage. The number of buy-to-let house purchase loans was up by 7% compared to August and up 15% compared to September last year. This totalled £1.1bn in value, up 8% on August and up 25% on September last year.
The number of remortgage loans increased significantly in September, up 26% on August and up 35% compared to September last year. These loans had a total value of £1.4bn, up 23% on August and up 38% on September last year.
In the third quarter of 2014, there were 26,370 loans for buy-to-let house purchase, up 10% on the previous period and up 16% on the third quarter 2013. These loans totalled £3.3bn, up 12% quarter-on-quarter and up 26% on the third quarter last year.
Buy-to-let remortgage lending totalled 25,150 loans with a total value of £3.8bn, up by 16% by volume and 18% by value on the previous quarter. In comparison to the third quarter last year, total number of loans increased by 21% and the value of these loans increased in this period by 28%.
Paul Smee, director general of the CML, commented:
“We are approaching the end of twelve months of change, transition and growth. This has been a year when lenders and intermediaries have been put under increased spotlight from regulatory, political and media spheres and have risen to meet the challenges. The lending market is healthier than it was a year ago, and set to remain so. Remortgaging has returned as a driver of lending volume in the buy-to-let sector. But any fears of over-heating in the housing market are now dissipating as house purchase lending activity seems to be softening.”
