This is the most amount borrowed in the month of February for house purchase since February 2007.
First-time buyers and home movers saw little change in February compared to January, but compared to the same month last year both grew substantially by volume and by value.
Affordability metrics for first-time buyers also remained relatively unchanged month-on-month, however the amount borrowers are spending of their monthly gross income to service capital and interest repayments was 18.1% - the lowest level since the CML began tracking this metric in 2005. Home movers are also paying at close to record low proportions of income at 18.1%, down from 18.3% in February 2015 and 23.8% in the recent peak of December 2007.
Remortgage activity totalled £4.8bn, down 17% on January but up 37% compared to a year ago. This is the most amount borrowed for remortgage in the month of February since February 2009.
Landlords borrowed £3.7bn in February, unchanged month-on-month but up 61% year-on-year.
Paul Smee, director general of the CML, said:
"In 2016, there have been substantial increases in house purchase and remortgage activity year-on-year. This reflects the sluggish market in early 2015, perhaps driven by election uncertainties. Buy-to-let has also seen substantial year-on-year increases, with particularly strong growth in remortgaging, a pattern which we have seen in the buy-to-let sector the past six months. Activity has been boosted by landlords seeking to complete purchases before tax changes in April. We do not expect activity to show such strong year-on-year growth later in the year."
Nicola Georgiou, Managing Director at Freedom Finance, commented:
“Borrowers are continuing to take advantage of the low mortgage rates on offer in February. As interest rates remain at a record low and realistically do not look like they will be rising anytime soon. The increased activity experienced by the buy-to-let market at the start of the year continued into February as landlords looked to complete ahead of the new stamp duty rate introduced at the start of this month."
Richard Pike, Phoebus Software sales and marketing director, added:
“The figures not only show the highest amount of borrowing for house purchase since 2007, but an increase across the board on 2015. Last year the general election was held responsible for a slower start to the year as potential house purchase was put on hold in an uncertain political environment. This year we have been handed further reason for caution as the vote on whether to stay or leave the European Union approaches, which could also have an effect in the second quarter of 2016. There is much uncertainty as the ‘yes’ campaigners fight with the ‘stay’ advocates, and without clarity this may well cause the same kind of reticence until things are more certain.
“Nonetheless there is still an appetite in the market, I will be interested to see March’s figures and discover exactly how much of a rush there was to beat the stamp duty changes.”
