Buy to let loan volumes up 18 per cent

The number of buy to let loans in September was up 18 per cent from Q3 2013, according to new data from the Council of Mortgage Lenders (CML).

The 18,100 buy to let loans in the month represented lending worth £2.5bn, with both the number and value of these loans up 15 per cent and 14 per cent respectively when compared to August figures.

When compared to September 2013, loans were up 24 per cent by volume and 32 per cent by value while differences between Q3 and Q2 2014 were also noted.

The number of buy to let loans rose 12 per cent between Q2 and Q3, while yearly growth for the quarter was up 18 per cent.

In terms of values, this represented a 16 per cent rise from Q2 and a 28 per cent increase from Q3 2013 – suggesting that investors are increasingly looking for more deals that suit their needs.

“We are approaching the end of twelve months of change, transition and growth,” explained Paul Smee, director general of the CML.

Of all buy to let loans in September, a higher proportion was advanced for remortgage than for house purchase – 9,260 for the former and 8,760 for the latter.

This means the number of buy to let house purchase loans increased by seven per cent from August and are up 15 per cent compared to September 2013.

These loans totalled £1.1 billion in value – up eight per cent from the previous month and 25 per cent year on year.

The number of remortgage loans also increased drastically between August and September, showing a month on month increase of 26 per cent.

Annual increases were high too, with the number up 35 per cent from last September, while remortgage loans had a value of £1.4 billion – up 23 per cent from August and up 38 per cent from a year ago.

In Q3 2014 as many as 26,370 loans were for buy to let house purchase, up ten per cent from Q2 and up 16 per cent annually.

In terms of value, these loans were worth £3.3 billion; an increase of 12 per cent quarter on quarter and up 26 per cent from a year ago.

Buy to let remortgaging totalled 25,150 loans to a value of £3.8 billion – a rise of 16 per cent by volume and 18 per cent by value from Q2.

When compared to Q3 2013, the number of loans was up 21 per cent while value has increase by 28 per cent from that period.

To see more analysis on both Q2 and Q3 please see our Complex Buy to Let Index.

12th November 2014