House purchase lending to home-buyers increased slightly month-on-month in December totalling 55,600 loans, according to latest data published by the Council of Mortgage Lenders (CML).
This was up 1% compared to November with the value of these loans totalling £9.3bn, a rise of 3%. Compared to December 2013, the number of loans decreased by 5% and the value of lending by 1%.
First-time buyers saw a month-on-month lending increase, with 26,100 first-time buyer loans in December – up 3% on November, but 3% down on December 2013. By value, £3.8 billion was advanced to first-time buyers in December – 6% up on November but unchanged compared to December 2013.
The number of loans advanced to home movers was 29,500, the same as November but down 8% on December 2013. By value, lending to movers totalled £5.5 billion, up 2% on November but 2% down on December 2013.
Remortgage lending activity saw a decline month-on-month in December with the number of remortgage loans totalling 22,300. This was 7% down on November and 13% down on December 2013. The value of these loans (£3.4 billion) was down 6% on the previous month and down 11% on December the previous year.
Buy-to-let loans totalled 17,300 in December, unchanged from November but up 18% compared to December 2013. The total value of these loans (£2.5bn) was up 4% month-on-month and up 32% compared to December 2013.
Paul Smee, director general of the CML, said: “Improving economic conditions, boosted by government schemes like Help to Buy, saw the highest amount of first-time buyers purchase their first home for seven years. The growth seen through 2013 and the beginning of 2014 in mortgage lending has softened in the last quarter, and we’d expect this steadying of the market to continue in 2015.
“In 2014, the mortgage market saw unprecedented change with the introduction of major regulatory reform but the market has adjusted and kept its stability throughout. There will be challenges in 2015, including preparation work on the European Directive implementation and a General Election potentially bringing new housing policies to be put in place. But the industry is stronger than a year ago and ready to meet the challenges going forward.”
