New CML data reveals August lending drop

Lending in August decreased slightly compared to July, marking the first time since February that lending declined, according to new data from the Council of Mortgage Lenders.

Drops in August lending were noted among first-time buyers, home movers and those looking for buy to let finance, compared to a month previously.

However, all aspects of lending were up compared to a year previously, with total lending in August 2014 totalling £18.1 billion.

While this is eight per cent lower than in July when lending totalled £19.7 billion, it represents a ten per cent rise from August 2013 (£16.4 billion).

Home purchase lending to home-buyers decreased month-on-month with both the total number of loans and their value down by three per cent.

In comparison to August 2013, the number of loans was up by eight per cent while the value of these loans has increased by 19 per cent.

Buy to let lending figures

A total of 15,300 buy to let loans occurred in August, accounting for lending of £2.1 billion – a 13 per cent drop in terms of both number and value compared to July.

However, this figure represents a six per cent increase by volume and an 11 per cent rise by value compared to August 2013.

Of that total figure of buy to let loans, 8,400 were advanced for property purchase in August, while 6,700 were for remortgage.

The number of buy to let house purchase loans was down by 13 per cent month-on-month, but up nine per cent year-on-year.

In terms of value, this totalled £1 billion, down 17 per cent from a month previously but up by 16 per cent on a yearly basis.

The number of remortgage buy to let loans also decreased by 14 per cent in July, and this also marked a one per cent drop year-on-year.

These loans also valued in the region of £1 billion, which was down 17 per cent on July but was up four per cent compared to August 2013.

Please see our complex Buy to Let data for the third quarter of 2014 for more research on property prices.

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