Liquid error: wrong number of arguments (2 for 1) November lending down month-on-month: CML | Marsh & Parsons Sales and Lettings Estate Agents London

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November lending down month-on-month: CML

Fri 15 Jan 2016

According to the Council of Mortgage Lenders, UK house purchase lending was 10.7 billion in November, down9% on October due to the winter slowdown, but up 18% on November 2014.

Paul Smee, director general of the CML, said: "As expected, mortgage lending activity eased back as the normaldip in the winter months began".

"There was still growth across all lending types in November compared to the year earlier suggesting continuedimprovement".

Home movers took out 32,300 loans, down 10 per cent month-on-month and up 9 per cent compared withNovember 2014.

This totalled 27,900 loans, down 8 per cent month-on-month, but up 10 per cent year-on-year.

"However, a fall in pricing means that first-time buyers are not overstretching themselves as they are payingclose to a record low proportion of their monthly household income to service their mortgages".

Meanwhile, despite government concerns, buy-to-let mortgage advances continued to grow, surging 17.6% YoYin November to 10,000.

Gross buy-to-let lending decreased in November compared to October but was substantially up on a year ago.

Remortgage activity saw a decrease by volume and by value in November compared to October, but increasedyear-on-year to have the highest volume of remortgage loans in the month of November since 2011 and the mostborrowed in the month of November since 2008.

Home-owner remortgage activity was also down 9 per cent by volume and 14 per cent by value, compared withOctober, while against November 2014, remortgage lending was up 24 per cent by volume and up 36 per cent byvalue.

From April 1 2016, people buying additional properties, such as buy-to-let properties and second homes, will payan extra three percentage points above current stamp duty rates.

In addition, changes being brought in over the next few years will alter tax breaks available to landlords.

"First-time buyers, homemovers and those seeking to remortgage have had it much easier thanks to arock-bottom base rate, but nowhere was this upswing in lending more evident than in the buy-to-let sector", saidPeter Rollings, chief executive of the Marsh & Parsons estate agent.

But Mr Harris said that some lenders are imposing tougher criteria on buy-to-let mortgages, making it harder forinvestors with smaller deposits to qualify, particularly in the South of England where returns for landlords tend tobe lower compared with the high cost of buying a property there.

"Remortgage lending rose significantly over the course of the year and we expect this to increase further in thecoming months as the argument for increasing the base rate continues to gain traction".

The sheer number of people getting in on the action highlights how competitive the mortgage market hasbecome, with average rates consistently falling and providers battling it out to offer better incentives and lowerfees to attract customers.

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