CML: remortgage lending up 19% in March

31st May 2015

According to new data from the Council for Mortgage Lenders (CML), remortgage lending increased in March with 26,600 loans advanced. This was a 19% increase on February and a 6% rise compared with March 2014. The value of these loans was £4.2 billion, up 24% month-on-month and 14% compared with March 2014.

First-quarter remortgage lending increased by 3% compared with the fourth quarter of 2014, with 75,400 loans advanced. However, this represented a decline of 5% compared with the first quarter of 2013. The value of these loans was £11.8 billion, up 6% quarter-on-quarter and 2% year-on-year.
The total number of loans advanced to first-time buyers in March was 23,000, up 20% on February but down 5% compared with March 2014. First-time buyers borrowed £3.4 billion, up 21% on February and 3% on March 2014.

Home movers took out 25,200 loans in March, an increase of 14% compared with February but a drop of 3% year-on-year. These loans were worth £4.9 billion, up 17% compared with February and 7% compared with March 2014.

A total of 18,200 buy-to-let loans were advanced in March, up 12% on the previous month and 21% compared with March 2014. These loans were worth £2.7 billion, up 13% compared with February and 35% compared with March 2014.

Paul Smee, director general of the CML, commented: “It was a slow start to activity in the first couple of months of 2015 but the market started to get out of the dip in March, a trend that we think will continue as the year goes on.

“We will have to wait and see how the housing market reacts to the general election result and the reduction in the risk of a prolonged period of market uncertainty, which could well have been damaging to businesses and the housing market.”

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