Mortgages to Landlords drops 64%

Buy-to-let lending fell 64% in a month, after the Stamp Duty deadline


But lending for home-movers and first-time buyers also dropped, by 53% and 11% respectively.

According to the Council of Mortgage Lenders, lending to all types of borrowers fell in April on a monthly basis.

Lending for home movers was also down 14% year on year while first-time buyers saw an 11% drop monthly, although lending to was up 15% annually,

Paul Smee, director general of the Council of Mortgage Lenders, said: “There is a sense of calm after the storm this month, as lending eased back, following the significant rises in activity in March as borrowers looked to beat the second-property Stamp Duty deadline. We expect the market to take several months to return to its previous levels after the lending surge.”

But lending could also be slowing down amid nerves ahead of the EU referendum

Paul Smith, chief executive of haart estate agents, said that buyer demand continued to decline in May.

He said: “This data correlates with our own which shows that buyer demand declined 5% on the month in May across the UK and transactions fell 3.9% over the same time period.

“While mortgage rates are currently at an all-time low and therefore very attractive to buyers, the exaggerated figures reported by the ‘remain’ campaign as to what could happen in the event of a Brexit, are causing jitters in the market, putting people off making decisions until after the result.

“However, regardless of which way the vote goes, the market is fundamentally robust and will return to its position as a pillar of strength once buyers know where the future of the UK lies.”

Written by: Houseladder