Remortgage lending at “strongest levels since 2009”

19th December 2016

Remortgage activity totalled £6.1 billion in October, up 11% on September and 7% compared with October 2015. A total of 34,700 loans were extended, up 10% month-on-month and 5% year-on-year. This equated to the highest number of loans taken out for remortgage since January 2009.

Landlords borrowed £3 billion, up 7% month-on-month but down 21% year-on-year. A total of 18,600 loans were extended, up 2% compared with September but down 25% compared with October 2015.

Homeowners borrowed £10.5 billion for house purchase, down 8% month-on-month and 11% year-on-year. The total number of loans extended was 57,800, down 8% on September and 13% on October 2015.

First-time buyers borrowed £4.5 billion, down 8% on September and 2% on October 2015. A total of 28,900 loans were extended, down 8% month-on-month and 4% year-on-year.

Home movers borrowed £5.9 billion, down 9% compared with September and 18% compared with October 2015. This included 28,900 loans, down 8% month-on-month and 20% year-on-year.

Paul Smee, director general of the CML, said: “Buy-to-let house purchase lending remains weak following the change to stamp duty on second properties in April.

“With lenders now tightening affordability criteria ahead of the Prudential Regulation Authority’s stress tests and the forthcoming tax relief changes next year, these lower volumes are likely to be the ‘new normal’.

“Homeowner and buy-to-let remortgage lending, however, has recovered and is running at its strongest levels since 2009. This appears to be linked to borrowers taking advantage of the repricing of mortgages following the base rate cut.”


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