Latest figures from the Council of Mortgage Lenders suggest that June was a good month for mortgage activity, with positive news for buy-to-let.
Data from the report shows that first-time buyers saw a significant month-on-month activity increase in comparison to May, but little movement year-on-year. Home mover lending was also up by month and also slightly by year.
Significant movement was recorded by home-owner remortgage activity, which increased by a third both month-on-month and year-on-year.
As for buy-to-let, a steady growth was evident over the year and over the month, with buy-to-let remortgage activity the prime driver. Buy-to-let lending for house purchase has seen a stronger performance than home-owner loans, which is in part due to buy-to-let lending dipping more than home-owner loans during the economic downturn. Buy-to-let lending accounted for 17% of gross lending during June.
June a good month for BTL market
Paul Smee, director general of the CML said. ‘notable this month is the uptick in remortgage activity among home-owners, perhaps reflecting an increased desire to lock into competitively-priced mortgage deals in advance of any rise in rates. It is likely that people are now beginning to feel a rate rise is a realistic prospect and not just a distant theoretical possibility.’
‘After a slower than expected start to the year, lending now appears to be picking up as we expected and in line with our recently revised forecasts, ‘Smee added.