Business

'Mixed fortunes' for home buyers, says mortgage lending body

Lending for mortgages was down in February according to the CML
Lending for mortgages was down in February according to the CML Lending for mortgages was down in February according to the CML

HOME buyers are facing "mixed fortunes" according to a body which said mortgage lending fell to a nine-month low in February.

The Council of Mortgage Lenders (CML) said an estimated £18.2 billion-worth of home loans were handed out in February - 8 per cent lower than January's lending total of £19.8 billion.

The figure is also slightly up on the £18.1 billion lent in February last year.

February's estimated lending total is the lowest seen since May 2016 - just after a stamp duty increase for buy-to-let investors came into force.

The CML's senior economist Mohammad Jamei said first-time buyers and existing home owners looking to re-mortgage are driving the mortgage market.

By contrast, the number of existing home owners moving house and the demand for buy-to-let mortgages remains "weak", he said.

A lack of people putting their homes up for sale could also be an obstacle for aspiring buyers in the coming months, he warned.

A stamp duty hike for buy-to-let investors was imposed on April 1 2016, and estate agents previously reported seeing a rush of investors snapping up properties before the deadline.

Mr Jamei said: "Mortgage lending is holding up well, but under the surface buyers face mixed fortunes.

"First-time buyers and customers who are re-mortgaging are driving total lending, while home movers and buy-to-let remain weak.

"The weakness in home movers means few properties are coming onto the market for sale, which is aggravating a supply demand imbalance that has characterised the market since late 2013.

"This looks set to continue at least over the next few months, posing an obstacle for would-be borrowers."