Strong lending for house purchase suggests buyer confidence in market

Research published by Property Industry Eye reports that mortgage lending for house
buying purposes was up 11% in August on the same month last year ? despite a drop of almost 40% in buy-to-let borrowing for house purchase.

First time buyers borrowed ?5.1bn, up 13% on July and 24% on August last year. This equated to 31,800 loans, up 12% month on month and 19% year on year.

Home movers borrowed ?7.1bn, up 15% on July and 3% compared to a year ago. This represented 34,200 loans, up 14% month on month and 2% on August 2015.

Re-mortgaging by both owner-occupiers and buy-to-let borrowers was strong, said the Council of Mortgage Lenders.

 

	House Purchase			Remortgage
	FTBs	Movers	Buy-to-let	Home owners	Buy-to-let
August 2015	26,700	33,700	10,600	25,000	11,500
July 2016	28,300	30,000	6,000	33,500	12,300
August 2016	31,800	34,200	6,500	34,900	12,800
1 month change	+12.4%	+14.0%	+8.3%	+4.2%	+4.1%
12 month change	+19.1%	+1.5%	-38.7%	+39.6%	+11.3%

 

 

 

Posted in ASR News