The latest data published by the Council of Mortgage Lenders (CML) has revealed that mortgage lending rose substantially year-on-year among first-time buyers and home-movers in April.
According to the figures, first-time buyers successfully borrowed £4.1bn in April 2017, up eight per cent compared with figures recorded in April 2016, while home-movers were granted £5.5bn in loans, representative of a 28 per cent year-on-year rise.
In comparison, however, buy-to-let investors borrowed just £800m, the CML’s report reveals.
Following the publication of the data, the CML has warned that the mortgage market has become “lopsided” in the wake of Stamp Duty Land Tax (SDLT) changes phased in last year.
Ever since former Chancellor George Osborne introduced a three per cent SDLT surcharge payable on second property purchases, buy-to-let borrowers have been straying away from expanding their property portfolios, it says.
Commenting on the figures, CML director general, Paul Smee, said: “The number of loans for buy-to-let house purchase advanced in April remained low compared to activity seen before the change on Stamp Duty on second properties introduced in April last year.
“Heading into the summer months, we expect the market to remain slightly lopsided,” he said.
“But both first-time buyer and re-mortgage lending should maintain momentum on the coat-tails of the attractive deals available.”