According to the Council for Mortgage Lending (CML) gross mortgage lending decreased by 14% in January to £14.3 billion.

Last month homeowners including first time buyers, home movers, remortgage buyers and buy-to-let landlords borrowed £14.3 billion the lowest since April 2013.

The January figures were 14% lower than December 2014 at £16.6 billion and 11% lower than this time a year ago.

The CML have said a softening of approvals towards the end of last year resulted in a relatively weak January. They expect gross mortgage lending to remain on target for £222 billion in 2015 or a 9% improvement on last year.

First time buyer lending improved

The number of first time buyers in December last year increased by 3% on November with 26,100 loans although this figure was 3% lower than the year before.

In terms of value advanced to these home buyers the figure was £3.8 billion up 6% on November and unchanged in December 2013.

Over the fourth quarter the number of loans advanced was 80,100, virtually unchanged from the previous quarter and the same period last year.

By value, the loans advanced to first time buyers totalled £11.6 billion a decline of 5% on the third quarter but up 5% on the fourth quarter in 2013.

Buy-to-let mortgages soar

According to the CML, loan advances to buy-to-let landlords increased  to 54,000 or by 4% on the previous quarter and 16% higher than the same period last year. By value this was £7.7 billion in December up 5% for the quarter and 26% higher than the previous year.

In contrast, lending to home movers and remortgage buyers declined.

Homeowners remortgaging decreased by 3% on the previous quarter to 73,100 which was 13% lower than this time last year. By value the loans advanced were £11.4 billion, a decline of 4% quarter on quarter and 10% lower compared to 2013.

For homeowners moving home the situation was similar with 93,100 advance loans a fall of 8% on the quarter and 5% lower than 2013. In terms of value the loans totalled £17.2 billion a decline of 4% quarter on quarter and 10% lower compared to last year.

Mortgage lending improved in 2014

Even with the fourth quarter declines gross lending for 2014 increased 14% from £178.8 billion to £204.3 billion.

The CML has said that improving economic conditions and the government Help to Buy scheme boosted the number of first time buyers.

The total number of house purchase loan advances, including first time buyers and home movers, totalled 676,900 for 2014, up 11% or by value this was £112.7 billion up 19% on 2013 and the highest annual lending since 2007.

For older homeowners there is higher activity with equity release mortgage buyers accessing cash in their property to repay an interest only mortgage, improve their quality of life or gift to a family member or friend.

What are your next steps?

Speak to our LCM mortgage advisers if you are planning to move home, buying your first home, remortgaging your existing home to a new cost effective mortgage deal or are a buy-to-let investor.

For equity release buyers our London City Mortgage brokers can recommend lifetime mortgages allowing you to receive cash from your property to help maintain your standard of living as costs rise.

Learn more by using the mortgage cost calculators, equity release mortgage calculator and property value tracker chart. Start with a free mortgage quote or call us and we can take your details.

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