Loans to home buyers jump 27 per cent in March but down since last year, according to the Council of Mortgage Lenders

 
Shruti Tripathi Chopra
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UK home buyers borrowed over £11bn in March this year (Source: Getty)

Loans to home buyers in March jumped 27 per cent on February but were down 12 per cent on last year, according to the the Council of Mortgage Lenders (CML).

UK home buyers borrowed £11.2bn, up 24 per cent on February but down 19 per cent on March 2016.

CML's latest data also showed that first-time buyers borrowed £4.9bn, up 29 per cent on February and nine per cent on March 2016. They took out 31,500 loans, up 30 per cent month-on-month and 12 per cent year-on-year.

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Home-owner remortgage activity rose 13 per cent by value and 14 per cent by volume on February while gross buy-to-let saw month-on-month increases, up four per cent by value and eight per cent by volume.

Paul Smee, director general of the CML, said: “Comparing this March to last year is misleading because of the peak in activity before the stamp duty changes last Spring. Overall, lending trends have remained reasonably consistent.

The relatively sluggish activity among home-movers stands in contrast to the growth in first-time buyer and remortgage activity, but in aggregate the market is showing broadly the levels of activity we expected. As we head into the summer, we expect a continuation of these trends, with both first-time buyer and remortgage lending expected to maintain momentum in the light of the very attractive deals currently available.”

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