CML: December saw 10% dip in BTL loans

Gross buy-to-let advances in December totalled 14,500 loans, which was down 10% compared to November 2013, according to the CML.

The value of these loans totalled £1.9bn, which was a decrease of 10% compared to November. 

Similarly, buy-to-let loans for house purchase followed the same trend down 10% in December to 7,280 loans in total compared to November. The loans totalled £840m in value, which again was down 10% compared to November.

In parallel to this, buy-to-let remortgage lending decreased in December to 7,060 loans, which was down 10% compared to November. These buy-to-let remortgages had a total value of £1.0bn, a decrease of 9% compared to November 2013.

Despite the seasonal dip, gross buy-to-let lending in the fourth quarter of 2013 was up 6% on the third quarter 2013 and an increase of 33% compared to the fourth quarter of 2012, totalling 46,700 loans. The total value of these loans was £6.1bn, again up 7% compared to the third quarter of 2013 and up 39% compared to the fourth quarter of 2012.

Buy-to-let loans for house purchase also showed growth with an increase of 4% compared to the third quarter 2013 and up 26% compared to the fourth quarter of 2012 resulting in a total of 23,640 loans. The total value of these loans was £2.7bn, up 5% compared to the third quarter of 2013 and up 34% compared to the fourth quarter last year.

Buy-to-let remortgage lending also increased in the fourth quarter 2013 to 22,680 loans, up 9% compared to the third quarter 2013 and up 42% compared to the fourth quarter last year. The total value of these loans was £3.2bn, up 9% compared to the third quarter 2013 and up 53% compared to the fourth quarter of 2012.

Article courtesy of the Financial Reporter

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