Mortgage lending increased across all sectors in the fourth quarter of 2015 annually, Council of Mortgage Lenders figures have revealed.
Mortgage lending increased across all sectors in the fourth quarter of 2015 annually, Council of Mortgage Lenders figures have revealed.
Lending volumes rose by 21% for remortgagors, 14% for first-time buyers and 9% for homemovers from Q4 2014 to Q4 2015.
From Q3 2015 the picture was more mixed, as remortgage volumes rose by 4%, first-time buyer volumes were up by 3% but homemover and buy-to-let volumes fell by 1%.
Paul Smee, director general of the CML, said: “Improving economic conditions, boosted by government schemes like Help to Buy, saw the highest quarterly number of loans to purchase a home for eight years.
“The market has seen a gradual upward trajectory over the past few years, rather than rapid growth and we'd expect this trend to continue with gross lending steadily increasing over the next two years.”
For the whole of 2015 buy-to-let and remortgage performance was especially strong, as volumes rose by 28% and 11% from 2014.
Other sectors were more modest, as first-time buyer volumes increased by 4% and homemover volumes fell by 0.2%.
Brian Murphy, head of lending at the Mortgage Advice Bureau, branded the first-time buyer figures ‘disappointing’.
He said: “As house prices rise it is important that lending grows in order to keep the market inclusive.
“It’s disappointing that the total number of first-time buyer loans last year remained unchanged from 2014, and many face difficulties in getting on the property ladder – especially in areas like London and the South-East where prices are rising fastest.
“Government and industry must work together to ensure that new buyers are catered for, and that limited housing supply is addressed.”
Andy Knee, chief executive of LMS, was pleased with the state of remortgaging.
He said: “Total 2015 lending for remortgaging, while still far short of levels witnessed before the recession, has bounced back and is at its highest value since 2008.
"We therefore start 2016 cautiously optimistic, but remain aware that there is still more to be done before it is back to full health."
He added: “It’s been a volatile start to 2016 and there are a number of challenges facing the remortgage market.
"The global financial markets in particular are causing mounting speculation and concern.
"The early part of this year will also be dominated by the topic of a potential Brexit and what that could mean for the UK economy.
"This uncertainty looks set to impact activity and confidence in the property market, with fluctuating lending expected until the outcome appears more certain."
