Buy-to-let investors are driving a recovery in the mortgage market that saw the total number of home loans issued rise 16% month-on-month in March, according to the latest data from the Council of Mortgage Lenders.
In the first quarter of 2015, buy-to-let mortgages made up 18% of home loans in the UK – the highest proportion of total lending since the CML’s quarterly records began in mid-2006.
But the trade association says this was mainly driven by both a fall in the number of remortgage and house purchase loans agreed in the first three months of the year.
The CML points out that the 52,300 buy-to-let loans advanced in the first quarter was down 3% on the previous quarter but up 15% on the same period in 2014. But the value of the loans has jumped to £7.8bn, which is 1% higher than the previous three months and a rise of 28% when compared with the first quarter of 2014.
The total value of mortgage lending in March was £16.1bn – an 18% increase from February’s gross lending total and 5% higher than lending in March 2014.
The CML adds gross lending for the first quarter of this year was £44.5bn – down 13% on the previous quarter and a 4% decrease on the first three months of 2014.