From 1st July the Council of Mortgage Lenders is integrated into a new trade association, UK Finance. For the time being, all UKF mortgage information will continue to be published on this website, and UKF member-only mortgage information will only be available here.

UK Finance represents around 300 firms in the UK providing credit, banking, markets and payment-related services. The new organisation takes on most of the activities previously carried out by the Asset Based Finance Association, the British Bankers’ Association, the Council of Mortgage Lenders, Financial Fraud Action UK, Payments UK and the UK Cards Association. Please go to www.ukfinance.org.uk for wider content and updates from UK Finance.

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CML to begin publishing monthly buy-to-let data this week

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Published: 11 September 2013 | Author: Bernard Clarke

From this Thursday, we are bringing forward plans to publish monthly figures on buy-to-let lending, showing the split for house purchase and remortgage, as part of our regular monthly press release. We are doing this partly so market commentators do not draw false inferences about the buy-to-let sector from sets of data published by the Bank of England and us. The data we publish this week will be for July. 

We have already welcomed the Bank of England’s decision to begin publishing a monthly breakdown of gross mortgage lending, split by purpose. As a result, we have an earlier indication of trends in house purchase, remortgage and "other" lending – such as further advances and lifetime mortgages, for example.

Publication of this new data by the Bank complements figures showing the split of approvals that it has already published for many years. It is important to remember, however, that data from the Bank and us on the split between lending for house purchase and remortgage is not directly comparable. The most important differences are:

  • Our data is a breakdown of regulated mortgage lending – broadly speaking, lending to home-owners. As such, it has excluded buy-to-let lending. However, Bank of England data on lending for house purchase and remortgage includes buy-to-let.
  • When a borrower refinances with his or her existing lender, we report the entire value of the loan in remortgage data. The Bank, on the other hand, records only the net increase in the value of the new loan on internal refinancing. And the Bank captures this amount in "other" lending, not remortgaging. But when the customer refinances with a new lender, we and the Bank include the total value of the loan as remortgage data.

There are also some technical differences in the data from the Bank and us, relating to sample sizes and grossing methodologies. The upshot is that comparing the Bank’s figures with ours would not provide meaningful or consistent estimates of monthly buy-to-let data – which is why we have now chosen to bring forward plans to publish monthly figures on this section of the market. 

We are also currently exploring whether we can provide robust forward estimates of the Bank of England split between lending for house purchase and remortgage as part of our monthly gross lending press release. If so, we would hope to begin publishing these within the next few months. Currently, we estimate only the total gross lending value that the Bank publishes.