Mortgages for Business reflects on the BBA High Street Banking Statistics for April
David Whittaker, managing director, Mortgages for Business, comments:
“Changes to stamp duty led to a hugely busy first quarter for lenders, as landlords sought to beat the clock and save thousands of pounds. Mortgage lending in 2016 has been frontloaded as a result of this, and the second quarter will be quieter. A slight tapering off of lending in April reflects a less frenetic marketplace. Despite this fall, lending remains higher than a year ago, which illustrates that borrower appetite continues.
“Strong returns resulting from high demand for rental accommodation will keep buy-to-let activity strong. There is still plenty of profit to be made, but landlords must ensure that they factor additional stamp duty into their financial planning along with the looming tax relief change.”
BBA High Street Banking Statistics, April 2016:
– The total value of loans approved fell by 7.4% between March (£13.1bn) and April (£12.2bn).
– The total value of loans approved increased by 8.8% between April 2015 (£11.2bn) and April 2016 (£12.2bn).
– The value of lending for purchase fell 10.6% between March (£8.1bn) and April (£7.2bn).
– The value of lending for purchase increased 1.2% between April 2015 (£7.1bn) and April 2016 (£7.2bn).
– The value of remortgage lending fell 1.8% between March (£4.5bn) and April (£4.5bn).
– The value of remortgage lending increased 25.2 % between April 2015 (£3.6bn) and April 2016 (£4.5bn).