Mortgage lending continues upwards trend -CML

However, on an annual basis, the value of lending grew across all lending types.

According to the CML’s data, first-time buyers borrowed £4.5bn for home-owner house purchase during the last two months of last year, up 7 per cent on November and 18 per cent on December 2014.

This totalled 29,300 loans, up 6 per cent month-on-month and 11 per cent year-on-year.

Home movers borrowed £6.6bn, up 2 per cent on November and 20 per cent year-on-year. This totalled 33,400 loans, up 3 per cent month-on-month and 12 per cent compared to December 2014.

Home-owner remortgage activity was down 16 per cent by volume and 16 per cent by value compared to November. Compared to December 2014, remortgage lending was up 14 per cent by volume and up 24 per cent by value.

Gross buy-to-let saw month-on-month decreases, down 3 per cent by volume and 3 per cent by value, but the growth year-on-year continued.

In the fourth quarter 2015 first-time buyers took out 87,100 loans totalling £13.3bn to purchase homes. This was up by volume 3 per cent on the third quarter and 14 per cent on the fourth quarter 2014 and by value it was up 3 per cent quarter-on-quarter and 8 per cent year-on-year.

Home movers took out 101,900 loans, down 1 per cent quarter-on-quarter but up 9 per cent compared to the fourth quarter 2014. This totalled £20.3bn, down 3 per cent on quarter three but up 18% year-on-year.

Home-owner remortgage activity was up 4 per cent by volume and 6 per cent by value compared to the third quarter. Compared to the fourth quarter 2014, remortgage lending was up 21 per cent by volume and up 35 per cent by value.

Gross buy-to-let saw a slight quarter-to-quarter decrease, down 1 per cent by volume and 1 per cent by value, but year-on-year growth continues.

First-time buyers borrowed £46.7bn for home-owner house purchase in 2015, which was up 4 per cent on 2014. This totalled 311,700 loans, unchanged from the previous year. First-time buyer lending was at its highest since 2007.

Home movers took out 365,800 loans, down 0.2 per cent on 2014, but the amount borrowed totalled £72.1bn was up 7 per cent on 2014. Lending was at its annual highest since 2007.

Home-owner remortgage activity was up 11 per cent by volume and 20 per cent by value compared to 2014. The value of remortgage lending was at its highest since 2008.

Gross buy-to-let also saw year-on-year increases, up 28 per cent by volume and 39% by value. Buy-to-let lending was at its highest since 2007.

Paul Smee, director general of the CML, said: “Improving economic conditions, boosted by government schemes like Help to Buy, saw the highest quarterly number of loans to purchase a home for eight years. The market has seen a gradual upward trajectory over the past few years, rather than rapid growth, and we’d expect this trend to continue with gross lending steadily increasing over the next two years.”