First-timers driving mortgage market
The statistics also revealed a slight lapse in the market November from October, as loans advanced to home-owners for house purchases fell by 3%.
Karen Bennett, sales and marketing director at Commercial Mortgages, Shawbrook Bank, said: “The property market is continuing to show real signs of recovery – boosted by the buy-to-let sector.
“However, we still need to be aware of the need for a responsible and sustainable industry. The new products aimed at property investors need to take into account interest rate rises when they occur.”
The Bank of England reported earlier this month that UK gross mortgage lending was at £17bn in November, a 4% decrease from October yet still 30% higher than £13.1bn in November last year.
Nick Harris, managing director of Centric Mortgage Finance, said: “If you are planning to remortgage or take out a loan, it may be worth doing so sooner rather than later.
“With the exception of a potential lull around the Mortgage Market Review implementation period, I predict volumes will rise further during 2014 and could hit £200bn.”
He argued that the repercussions of the Mortgage Market Review will be a reduced appetite for new business in April due to logistical reasons.
Loans numbers for home movers declined by 2.4% in November from October, while the amount of buy-to-let loans taken out in November remained at a steady 16,200.
Buy-to-let remortgage lending increased slightly in November to 7,700 loans, up 1.3% compared to October.
Richard Sexton, director of e.surv chartered surveyors, added: “The market is bristling with confidence and first-time buyer activity is so far showing no signs of dimming down.
“On the flipside, first-timers are also the most at risk to suffer from rising house prices. If more houses aren’t built, it is first-time buyers who will inevitably be pushed out of the market, as prices are propelled higher.”