Bank of England record strong end of year results for buy to let

Official figures for 2014’s Q4 show an increase in the quantity and value of buy to let mortgages across Britain

In their latest statistical release: Mortgage Lenders and Administrators Statistics for Q4 2014, the Bank of England (BoE) reported strong results for the buy to let market at the end of last year.

Lending for this purpose increased by 0.6 per cent from a quarter previously, putting the total proportion of buy to let lending up from 14.3 per cent in Q3 to 14.9 per cent in Q4.

The first time buyer market also reported a quarterly increase, albeit of a much smaller 0.1 per cent from 21.7 per cent in Q3 to 21.8 per cent in Q4, while house purchase lending was down 0.8 per cent to 71 per cent overall.

Remortgaging was also up; rising from 23 per cent in Q3 to 23.7 per cent by the end of 2014.

Increased loan values

As well as recording growth in the quantity of buy to let mortgages for the end of the year, the BoE also noted an increase in loan values for investors from a year previously.

Overall £6.6 billion was advanced in Q4 2013 before jumping to £7.6 billion in Q4 2014. This followed fairly consistent growth throughout the year with Q1 and Q2 figures recorded at £6.8 billion and £7 billion respectively.

Although there was a slight drop recorded between Q3 and Q4 of 2014 for buy to let loans values, this does seem to be part of a wider trend.

Buy to let loan values peaked at £8 billion in Q3 before dropping slightly to £7.6 billion in the most recent quarterly results while values for all other loan types also during this time.

First time buyer values recorded one of the largest drops, down from £12.1 billion to £11.2 billion, while house purchase loan values also fell by a fair margin: £40.1 billion to £36.4 billion.

Remortgaging values also dropped slightly, reducing from £12.9 billion to £12.2 billion over the same period.

Other types of new lending which include lifetime and equity release mortgages also recorded decreases in quantity (from 3 per cent to 2.8 per cent) and value (from £1.7 billion to £1.5 billion) between Q3 and Q4 2014.

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