CML: Buy to let sees slow but steady growth in February

According to the latest figures from the Council of Mortgage Lenders, gross buy-to-let advances in February totalled 15,900 loans, down 13% compared to January but up 11% compared to February 2014.

Related topics:  Mortgages
Amy Loddington
14th April 2015
BTL house signs buy to let

These loans represented £2.2bn of lending - down 12% from January but 16% up compared to February 2014.

The number of buy-to-let loans for house purchase was 7,400 in February, down 3% on January but 1% up on February 2014. These loans represented a value of £900m, a decrease of 10% month-on-month but up 3% year-on-year compared to February 2014.

The number of buy-to-let loans remortgages fell 19% in February from January to 8,400, but this was an increase of 23% on February 2014. The value of these loans totalled £1.3bn, down 13% month-on-month but 31% compared with last February. 

Paul Smee, director general of the CML, commented:

"As with January, seasonal factors have played their part in dampening house purchase lending activity in February. This typical seasonal trend may also be exacerbated by uncertainty ahead of the general election, but we still expect to see an upturn in the spring and summer months. 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.

"We this month 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."
 

Karen Bennett, Sales and Marketing Director, Commercial Mortgages, Shawbrook Bank, said:
 
“A contributing factor to the fall in February’s overall mortgage lending is likely to be the general feeling of uncertainty that is always in the market when we approach an election, combined with the continued impact of tighter lending criteria on owner-occupiers.
 
As part of this, we are seeing the more specialist buy-to-let market stabilising, with less rapid, but still robust, growth than in previous years. As professional investors continue to expand their portfolios and add value by refurbishing or renovating, the signs are there for a continuing strong mortgage market. In order to ensure market sustainability, brokers should always encourage responsible borrowing by clients.”

 

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