UK mortgage lending in February continues strong year-on-year growth

New CML data released today on the profile of UK lending in February 2014, including first-time buyer, home mover, remortgagor and buy-to-let lending, shows:

The dip in mortgage lending in February was primarily due to the expected seasonal factors associated with this time of year but year-on-year growth comparisons remain strong.

Total number of loans advanced to home-owners for house purchase remained practically unchanged in February compared to January but increased 33% compared to February 2013.

First-time buyers took out 22,200 loans in total in February, a modest rise in volume compared to January but up 41% compared to February 2013.

Home movers took out a total of 26,200 loans for house purchase in February, down 2.2% compared to January but up 27% compared to February last year.

The total number of loans taken out by home-owners for remortgage fell in February by 15% compared to January but still had a strong year-on-year increase up by 17% compared to February 2013.

Gross buy-to-let loans advanced decreased in February to 14,300 compared to 15,700 in January but there was a strong year-on-year increase in volume of 46% compared to February 2013.

The Bank of England reported earlier this month gross UK mortgage lending was £14.8bn in February, a 8% fall compared to January, but 40% higher in value than February last year.

Lending for home-owner house purchase

Despite the predicted seasonal dip around this time of year, lending for home-owner house purchase in February remained steady. The total number of loans advanced to home-owners for house purchase was 48,400 loans, only a slight difference to the 48,500 loans in January, but an increase in volume of 33% compared to February last year. Overall, the value of the loans advanced in February totalled £7.8bn, which was only slightly lower than £7.9bn in January but a substantial increase of 47% compared to February 2013.