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Buy-to-let share of mortgage lending up for first time since 2017

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  • 12/06/2018
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Buy-to-let share of mortgage lending up for first time since 2017
Buy to let, as a share of new lending, has increased for the first time in a year, according to quarterly Bank of England data.

 

Landlord mortgages accounted for 13.9% of new lending over the first three months of 2018.

Overall new loans increased by 3.3% year-on-year to £62.4bn, the data showed.

However, compared to the final quarter of 2017, lending fell 9.6%.

And new commitments – lending that has been agreed in advance in coming months – dropped 5.9% to £61.1bn.

Remortgaging edged up to account for 32.9% of lending with a value of £20.5bn, while new loans for purchases, including buy to let, dropped to 61.0%, driven by a fall in home movers.

 

First-time home movers

 

Within these figures, the share of first-time buyers has fallen to 19.6%.

The proportion of loan-to-income above four decreased as a share of lending in the quarter, as did the share of loan-to-value mortgages above 90%.

The proportion of total loans in arrears has also continued to fall with the outstanding balance in arrears now at £14.8bn.

Jeremy Leaf, north London estate agent and a former RICS residential chairman, said: “Although a little historic, the decrease in mortgage lending is disappointing. But of more concern is the fall in proposed advances.

“The reduction in the proportion lent to first-time buyers when buy-to-let investor borrowing increased for the first time in more than a year may be a sign that the government’s intention to ‘level the playing field’ between the two groups is not working.”

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