According to recent statistics, house purchase lending grew by 5% during November.
The data from the Council of Mortgage lenders indicated that £11 billion was borrowed by home-owners for the purpose of buying a house during November. Compared with October, this is a monthly rise of 5% and annually speaking, an increase of 2%.
Home owners took out 60,800 loans, which similarly is a growth of 5% and compared to November 2015, a rise of 0.2%.
Where first time buyers were concerned, the amount borrowed had increased by 4% since October, reaching £4.7 billion; an annual rise of 9%. This represents a total of 30,100 loans which is a month-on-month rise of 5%. Since last November, the amount of first time buyer loans has grown by 8%.
For those moving home, borrowing totalled £6.3 billion, a figure 7% higher than the amount in October. Since last year, the borrowing figure has grown by 5%. This equated to 30,700 loans, a figure 6% higher than October 2016, but 6% lower than November 2015.
Totalling £5.8 billion, remortgage activity has dropped by 5% since October, but is 14% higher than the figure for November last year. In terms of loans, this represented 34,700, which on a monthly basis remains the same, but is up 13% compared to a year ago.
For landlords, the amount borrowed had grown by 10% month-on-month, with a total of £3.2 billion. Compared to last year’s figure however, November 2016’s amount is 9% lower. This equates to 21,000 loans, an increase of 13% since October, but down 10% in comparison to last year.
Commenting on the recent figures was Andy Knee. The chief executive of LMS highlighted the favourable climate of the market despite uncertainty.
“November’s lending figures paint a picture of resilience. First-time buyers and remortgagors benefitted as the value and volume of loans rose annually, despite a rocky year both in political and economic terms*.
He did however mention that in the short term at least, the new year was likely to bring its own difficulties.
“But as we look ahead to 2017 there is cause for concern. Theresa May is expected to declare her commitment to a ‘hard Brexit’ later today, creating a rocky ride for the UK, at least in the short term.
“While appetite for – and confidence in – property will remain steady, it is highly likely that mortgage rates will rise in 2017. Higher inflation could also become the norm, putting extra pressure on household budgets. Homeowners should take advantage of low rates and remortgage to secure reduced monthly repayments while they still can.”
