In February lending for house purchase was up 21% year-on-year in value with £8.7bn loans, while in terms of volume it rose by 12% to 48,000.
February house purchase lending reached a nine year high in 2016, figures from the Council of Mortgage Lenders have revealed.
In February lending for house purchase was up 21% year-on-year in value with £8.7bn loans, while in terms of volume it rose by 12% to 48,000.
First-time buyers lending also rose by 21% to stand at £3.4bn, or 11% in terms of volume with 22,000 loans.
Jeremy Duncombe, director of Legal & General Mortgage Club, said: “Lending showed no sign of easing off in February, as borrowers continued to take advantage of the record low mortgage rates currently on offer, and buy-to-let landlords rushing to complete ahead of the stamp duty increase we saw implemented on April 1.
“On the face of it, this is good for the market, as more people are getting the mortgages they need to take a step onto or up the property ladder.
“However, a lack of supply is continuing to drive up house prices, resulting in many people still being priced out of the market completely. The industry and the government need to continue to work together to realise the various construction initiatives recently announced if we are to fulfil the promise of building 250,000 properties each year.”
In February homemover lending rose by 20% year-on-year to £5.3bn, while lending to landlords rose by 61% year-on-year to stand at £3.7bn.
Steve Griffiths, head of sales and distribution at Kensington, added: “Lending remains strong across each area of the market as we progress through the year.
"This growth is a positive move, as it means more people have successfully secured the mortgages they need, whether they are first time buyers, existing homeowners or individuals looking to make a buy to let investment.
“However, the true sign of a healthy market lies beyond what the headline figures show. A successful industry is one that caters to a broad range of customer circumstances, including credit worthy borrowers whose circumstances may not fit the standard criteria of many lenders.
"If we are to ensure a fair market, we need to make sure that this growth in lending reflects the diversity of our customers."
