Date Published 14 November 2014
September saw a significant increase in buy-to-let lending, new research has revealed.
The latest figures from the Council of Mortgage Lenders (CML) show there were 18,100 buy-to-let loans in the month, accounting for a total of £2.5 billion. This represents volume growth of 24 per cent on September last year and a 32 per cent increase in value.
Buy-to-let lending had dipped to a low of 15,700 in August, but has now returned to a level that is very similar to July.
For the third quarter as a whole, lending in this area was up 12 per cent on the second quarter and 18 per cent on the same period 12 months earlier. In terms of value, growth of 16 per cent and 28 per cent was recorded respectively.
In total, there were 51,520 buy-to-let loans in the third quarter, some 26,370 of these were for home purchase and 25,150 for remortgage.
Paul Smee, CML director general, stated: "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," he added.
Regarding first-time buyer lending, the CML revealed the typical loan size for this group rose from £125,375 in August to £125,999 in September. This means first-time buyers were typically borrowing 3.4 times their gross income, slightly down from the 3.42 recorded in August.
For the third quarter as a whole, average first-time buyer lending was £125,875, which is up from £122,000 in the preceding three-month period. The average income of this group was £38,420, compared to £36,750 in the second quarter.
@ Source Gary Whittaker Rentman
