House Purchase Lending ‘Declined In August’
Investors who are involved in the property lettings Norwich has on the market, as well as other parts of the UK, will no doubt be interested to hear that house purchase lending for August saw a small decline of three per cent compared with the previous month.
Figures from the Council of Mortgage Lenders (CML) have revealed that there were 28,900 first-time buyer loans for the month, which represented a drop of four per cent when compared with July. However, this is a nine per cent rise for the same month last year.
Lending for buy-to-let investors also dropped by 13 per cent over the month to reach £2.1 billion, although this was an 11 per cent increase on August last year. In all, total gross lending for the month was £18.1 billion, ten per cent higher than August 2013 but eight per cent lower than in July, according to the Bank of England.
Director-general of the CML Paul Smee described these results as “glass half full, glass half empty”, going on to add that “this has been a year of major change and the market has shown significant resilience and responsiveness to the changing environment, improving the availability of lending without compromising financial stability”.
This comes as the CML revealed that mortgage arrears and possessions were down in the second quarter of the year, with a fall in numbers across all bands and the overall total currently at the lowest it has been since the first three months of 2008.