However, lenders were in an unprecedented drive for volume this time last year ahead of the incoming Mortgage Market Review (MMR) making year-on-year lending figures look poor in 2015.
In January, lenders advanced 19,000 loans to first-time buyers, which was a fall of 27% on December and 14% against January 2014. By value, the £2.8bn lent to first-timers was down 26% on December and 10% on January last year.
However, there were 18,200 buy-to-let loans in January – up 6% on the previous month and up 12% on the same period in 2014. These loans came to £2.5bn in value, unchanged compared to December but up 14% on January 2014.
Gross buy-to-let advances in January were boosted by a significant increase in remortgaging, despite a slowdown in house purchase. There were 18,200 loans, up 5% compared to December and 12% compared to January 2014. These loans represented £2.5bn of lending – unchanged from December but 14% up compared to January 2014.
However, the number of mortgages advanced for home-movers was down month-on-month and year-on-year, with 22,400 loans advanced. These loans totalled £4.2bn in value – 24% down on December and 14% down compared to January 2014.
Remortgaging was up month-on-month with 25,600 loans advanced – up 15% on December but 12% down on January 2014. The value of these loans at £4.1bn also increased month-on-month by 21% but was down 5% year-on-year compared to January 2014.
Paul Smee (pictured), director general of the CML, said the seasonal lull was more prominent this year than previous years with affordability constraints still a factor.
“Increases month-on-month in remortgaging, both for home owners and in the buy-to-let market, are welcome given the recent static nature of remortgage activity. Interest rates are looking unlikely to go up in the very near future and the greater availability of good mortgage rates has probably motivated people to look at a change.”
Mark Harris, chief executive of mortgage broker SPF Private Clients, said: “January saw a bigger dip in lending compared with December than usual, which may partly be down to the flurry of activity at the end of last year to beat the stamp duty changes.
“Buy-to-let continues to go from strength to strength and interest in the sector is set to continue when pension rules are relaxed next month. A combination of cheap mortgage rates, easing criteria, plenty of demand from tenants and poor savings rates, are convincing many that investment property is the sensible home for their money.”
