The London property market saw increased mortgage lending in the second quarter of 2015 but levels were still down compared to the same quarter last year.
The latest quarterly data from the Council of Mortgage Lenders shows that home owner house purchase activity in Greater London came out of the traditional seasonal dip to show growth in the second quarter by volume and value.
First time buyer activity saw similar trends with an increase in levels on the first quarter of the year, but this sector was also down on the same quarter last year.
Unlike house purchase activity, remortgage lending had quarter on quarter and year on year growth in both volume and value.
“As in the UK overall, the London market came out of the usual seasonal dip in the first few months of the year and saw increased activity but volumes are still on the same period last year,” said Paul Smee, director general of the CML.
“Remortgage activity has shown quarterly and year on year growth after a period of stagnation. Borrowers appear to be taking advantage of competitive mortgage rates, ahead of a potential future interest rate rise,” he added.
In Wales house purchase activity saw large quarter on quarter increases compared to the first quarter of the year, but a slight decline in volume of loans compared to the second quarter in 2014.
First time buyers increased significantly from the first quarter, but decreased in amount borrowed and number of loans compared to the second quarter of 2014.
Home movers went up in volume and value quarter on quarter, and while number of loans remained unchanged year on year the amount borrowed by home movers increased.
The data also shows that remortgage activity increased compared to the first quarter and on the same quarter last year.
“House purchase activity appears to have woken up in Wales after traditionally slower levels in the winter months,” said Julie-Ann Haines, CML chair for Wales.
“The uptick in remortgage is, in particular, striking as levels had remained relatively identical over the previous four quarters. With the current low rates of interest unlikely to continue, it seems that borrowers are now taking advantage of competitive mortgage rates before a rise,” she added.
Source: Property Wire