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Buy-to-let continues to rise

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Buy-to-let lending decreased towards the end of last year, but overall was substantially higher than the previous year, according to the Council of Mortgage Lenders (CML).

Buy-to-let loans went from 24,700 in October 2015 to 23,300 in November 2015, down by 6% but were substantially higher compared to November 2014.

Total house purchase lending totalled £10.7bn in November, down by 9% in October but up 18% on last year.

First-time buyers borrowed £4.2bn for home-owner house purchases, down by 9% in October. This totalled 27,900 loans, down by 8% but 10% higher compared to last year.

The CML figures also show:

  • home movers took out 32,300 loans, down 10% but up 9% compared to November 2014
  • home-owner remortgage activity was down 9% compared to October
  • compared to November 2014, remortgage lending was up 24%.

These figures come ahead of the new stamp duty surcharge of 3% that comes into effect from April 2016.

Paul Smee, director general of CML, commented:

“As expected, mortgage lending activity eased back as the normal dip in the winter months began. There was still growth across all lending types in November compared to the year earlier suggesting continued improvement. 

“Our forecasts anticipate that gross lending will continue a slow but steady upward trajectory over the next two years.”

Talk to us today for more information on buy-to-let lending.