11 Dec

Lending on the rise again

Lending on the rise again

Home lending across the UK has risen in the third quarter of the year, according to the latest figures.

Data from the Bank of England shows lending for home purchases totaled £43.5 billion - 8.5 per cent higher than in the same period last year.

However, lending to first-time buyers has dropped by 0.3 per cent - with those keen to step on to the property ladder accounting for 20.4 per cent of home loans in the quarter.

There was also a decrease in the amount of lending to buy-to-let investors - which could be a result of changes to the tax relief given to landlords.

Peter Rollings, chief executive officer of Marsh & Parsons, explained some overseas buyers have moved away from the UK market because of the higher stamp duty payable on larger purchases.

He added: "Proportionally, across the country, remortgaging activity has been taking up a larger chunk of the lending pie recently, as existing home owners try to build up their defences ahead of an expected interest rate rise in 2016.

"But the rankings may change in the run up to April’s stamp duty increase for second homes, and buy-to -let lending is likely to rev up quickly, as investors act before the finishing flag for current conditions."ADNFCR-1222-ID-801807821-ADNFCR

Cookies We use cookies to ensure that we give you the best experience on our website. To find out more about our cookies policy, see our cookies policy here or in the footer.