Mortgage borrowing falls in Jan 2017

Mortgages in the form of loan borrowing plummeted in January, suggesting housing market activity is already in decline beforehand of Article 50 being precipitated, according to Manchester broker specialists

according to the Council of mortgage lenders, domestic consumers borrowed £8.four billion in January, down 28% on December and 1% from the identical time ultimate yr.

First-time customers borrowed £3.6 billion, down 29% on December but up nine% on January final year.

home movers borrowed £4.9 billion, down 25% at the preceding month and 4% for the year.

however, there was a surge in remortgaging remaining month, with interest up 54% to £7.1 billion.

Paul Smee, director well known of the Manchester CML, stated: “January gives the impression of a flattish marketplace universal, albeit one with a resurgent remortgage zone.

“We expect a seasonal dip in interest in the wintry weather months and this appears to be the case in January. however, the lull in transferring pastime appears stubbornly chronic, and we’ve got commissioned studies at the motives why the number of transactions seems in secular decline.”

The variety of buy-to-let loans taken out fell from 6,400 in December to 5,900 in January.

Landlords borrowed £800 million in January, down from £900 million in December and £1.4 billion at the same time remaining 12 months.

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