CML Regulated Mortgage Survey reveals 18% year-on year increase in UK house purchase lending

A Regulated Mortgage Survey published by the Council of Mortgage Lenders (CML) on Thursday, shows that UK home-owner house purchase lending amounted to GBP10.7bn in November 2015, down 9% on October figures, but an increase of 18% compared to November 2014.

CML is comprised of members from banks, building societies and other lenders that together undertake around 95% of all residential mortgage lending in the UK. There are reportedly 11.1 million mortgages in the UK, with loans valued at over GBP1.3trn.

According to CML, mortgage lenders provided a total of 27,900 loans to first-time buyers in November, a decline of 8% compared to October, but an increase of 10%  when compared to the same period in 2014. A total of GBP4.2bn was lent to first-time buyers for home-owner house purchases in November 2015, a drop of 9% compared to the month before, but a rise of 14% year-on-year.

Home movers borrowed a total of GBP6.5bn in November 2015. This figure was down 10% on October, but up 20% compared to November 2014. Home mover borrowing represented 32,300 loans, a rise of 9% compared to November 2014, but a decline of 10% month-on-month.

Compared to October 2015, home-owner remortgage activity was down 9% by volume and 14% by value in November. Compared to the same period in 2014, remortgage lending increased 24% by volume and rose 36% by value. There were month-on-month decreases in gross buy-to-let, down 6% by volume and 8% by value, but there was a continued substantial growth year-on-year.

Director general of the CML, Paul Smee, stated:

“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”.