Remortgage levels buck the trend in April

20th June 2016

According to new figures from the Council of Mortgage Lenders (CML), remortgage activity rose in April despite decreases in homeowner, first-time buyer and home mover lending.

Remortgage activity totalled £6 billion, up 25% compared with March and 40% compared with April 2015. The number of loans totalled 34,800, up 23% month-on-month and 30% year-on-year.

Homeowners borrowed £8.1 billion for house purchase, down 40% month-on-month and 4% year-on-year. The number of loans totalled 47,300, down 31% on March and 5% on April 2015.

First-time buyers borrowed £3.9 billion, down 11% on March but up 15% on April 2015. This equated to 25,100 loans, down 9% month-on-month but up 7% year-on-year.

Home movers borrowed £4.3 billion, down 53% on March and 14% on April 2015. This represented 22,200 loans, down 46% month-on-month and 15% year-on-year.

Landlords borrowed £2.5 billion, down 65% month-on-month and 7% year-on-year. The number of loans totalled 16,100, down 64% compared with March and 10% compared with April 2015.

Paul Smee, director general of the CML, said: “There is a sense of calm after the storm this month, as lending eased back, following the significant rises in activity in March as borrowers looked to beat the second property stamp duty deadline.

“We expect the market to take several months to return to its previous levels after the lending surge.”

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