CML: BTL remortgaging bolsters market

22nd June 2015

While homeowner remortgage activity declined in April compared with April 2014, growth in the buy-to-let (BTL) sector was primarily driven by remortgage activity, according to the Council of Mortgage Lenders (CML).

Having remained relatively subdued since around 2009, remortgage activity among homeowners was down on a monthly and annual basis. However, remortgage customers helped to bolster the BTL market. Over the past year, CML figures show that approximately 52% of BTL lending was for remortgage compared with just 30% for homeowners.

Paul Smee, director general of the CML, commented: “House purchase lending in April was relatively subdued compared to last year, but similar to activity in March. The economy is recovering, with employment up, earnings growing and competitive mortgage rates, so we expect activity to continue building as the year progresses.

“Buy-to-let is showing stronger growth than homeowner lending, buoyed significantly by remortgaging, which continues to remain more subdued in the homeowner market.”

*2 year fixed with TSB 1.09% then 3.59% - APRC is 3.3% Max LTV is 60%. Quoted on 27th May 2020.