According to the CML, house purchase lending in London saw a quarter-on-quarter rise in Q2, in both the number and value of loans, compared to Q1. Despite this, there were fewer borrowers in London than in the same period in each of the two preceding years. House purchase lending in the quarter was driven by first-time buyers, who made up 57% of all house purchase activity. Remortgage lending also saw a rise year-on-year and quarter-on-quarter in the amount borrowed and in the number of loans.
Buy-to-Let (BTL) lending in Q2 was 25.5% higher by volume and 39.7% higher by value than in Q2 2014. However, remortgaging accounted for just over half of this amount both in terms of volume (50.7%) and value (52.2%).
The average loan value for house purchase stood at £176,000 in July, according to the BBA.
Over half a million people in the UK intend to use their retirement savings to pay off their mortgage by using either the tax-free 25% lump sum or their entire pension pot, according to specialist insurer Partnership.
Nick Barnes (NB), Head of Research at Chestertons:
Worrying signs for borrowers with the recent withdrawal of some of the best fixed rate deals. Is this the beginning of the drift upwards in high street lending rates – regardless of how the Bank Rate moves?