You are here: Home - News -

Buy-to-let lending up 36% year-on-year in October

  • 15/12/2015
  • 0
Buy-to-let lending up 36% year-on-year in October
Gross buy-to-let lending increased by 36% year-on-year in October to reach £3.8bn, statistics from the Council of Mortgage Lenders (CML) show. 

Compared to the previous month, buy-to-let lending rose by 3% from £3.7bn. Overall, buy-to-let lenders advanced 24,800 mortgages, compared to 23,900 in September and 19,400 in October 2014.

The CML said that this was the highest monthly gross buy-to-let lending level by value and by volume since it had began tracking buy-to-let data on a monthly basis which began in January 2013.

By transaction type, buy-to-let remortgaging outstripped house purchasing activity in value and volume. The number of remortgages advanced in October was 13,300 valued at £2.2bn. This represents a 39% rise in volume and a 47% increase in value year-on-year. The value of buy-to-let house purchase lending in October reached £1.6bn, a 33% increase year-on-year while transaction levels jumped 18% year-on-year from 9,700 loans to 11,400.

Mark Harris, chief executive of mortgage broker SPF Private Clients, said: “Landlords may be disgruntled by the double whammy of tax changes and the impending hike on Stamp Duty but they can’t complain about some of the cheapest buy-to-let rates ever. However, lenders are beginning to impose tighter criteria on buy-to-let mortgages when it comes to stress-testing and others are expected to follow, making it harder to qualify for higher loan-to-value mortgages, particularly in the south where yields are low.”

Residential lending

Remortgage lending saw the greatest year-on-year increases out of the three categories of lending types.

Homeowner remortgage lending compared to October 2014 increased by 19% from 27,000 loans to 32,100 and 34% in value from £4.1bn to £5.5bn.

First-time buyers borrowed £4.6bn for homeowner house purchase, up 10% on October last year which totalled 29,900 loans, a rise of 3% year-on-year.

Home movers took out 35,400 loans, an increase of 3% compared to October 2014 which held a value of £7.1bn; 13% higher than the value of homemover mortgages in the same month of previous year.

UK gross lending overall in October totalled £21.9bn, up 9% on September and 19% on October last year. This is the highest monthly gross lending figure since July 2008.

There are 0 Comment(s)

You may also be interested in

Business Skills

In this section, we offer short ‘how to’ guides on harder to crack areas of business. From social media, to regulation or niche product areas, we cover it all.


Our journalists interview key industry entrepreneurs, strategists and commentators for day-to-day market insight and a strategic view of where the industry is heading. We offer lessons for success and explore the opportunities for your business

Success in Practice

Here, we share case studies fleshing out best practice to help you decide what could work for your business. Take a look at how others approached complex tasks like launching a new mortgage lender, advising on a new product area or deciding to specialise in another. Learn from others mistakes and triumphs.


Each week, we ask top mortgage and property commentators with a unique perspective to examine a key news headline, market move or regulatory or political issue.


Vote in our weekly poll here. It’s your chance to tell us what you think and be heard on the top news stories of the week. Review our archive to find out what your industry really thinks and all our coverage of the results.

Top Comments

Be part of the conversation on Mortgage Solutions. We want to hear from you. We have a tool called Disqus to tell us which stories get the most comments each week. Every Friday, the team picks the most thoughtful or opinionated contributions from our readers to enjoy again. Don’t forget to share your favourite stories from the site on social media to keep the conversation going.
  • RT @robjupp: Great day yesterday for donations to @MortSleepOut. With Gift Aid, we are now close to £17,000. It would be great to get to £2…

Read previous post:
Decision on HBOS investigation made before final report was seen, MPs told

The accountancy regulator decided not to investigate the audit process behind failed bank HBOS before seeing a draft of the...