You are here: Home - News -

Remortgage lending rockets as house purchase activity slumps

  • 14/03/2017
  • 0
Remortgage lending rockets as house purchase activity slumps
Remortgaging activity raced ahead of house purchasing in January as lending to non-movers rose by 54% on December to £7.1bn, figures from the Council of Mortgage Lenders revealed.

By volume, month-on-month, remortgage transactions grew 46% to 40,300. Looking back to the same period a year earlier, lending by value rose 22% and 21% by volume.

Lending to first-time buyers and homeowners, however, slumped in January. Mortgage lenders advanced £3.6bn to first-timers, down 29% on December but up 9% year-on-year. Transaction levels also declined. Some 22,600 loans were offered to fledgling buyers in January, 29% fewer than in December, but a 7% increase year-on-year.

Existing homeowners, looking for their next purchase, borrowed £4.9bn, a decline of 25% on the previous month and 4% down year-on-year. The volume of lending suffered similar rates of decline. Mortgage lenders advanced 23,000 loans to homemovers, down 27% month-on-month and 7% compared to January 2016.

Paul Smee, director general of the CML, said: “January gives the impression of a flattish market overall, albeit one with a resurgent remortgage sector. We expect a seasonal dip in activity in the winter months and this appears to be the case in January. However, the lull in moving activity appears stubbornly persistent, and we have commissioned research on the reasons why the number of transactions seems in secular decline.”


There are 0 Comment(s)

Comments are closed.

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:
Peter Williams
BTL drives strong Q4 for broker enquiries

A notable increase in the number of buy-to-let borrowers contacting intermediaries led a strong Q4 of 2016 for mortgage advisers.