Mortgage Market Update
New Mortgages granted – July Estimates
The Council of Mortgage Lenders reported on 20th August that July’s estimated figure for gross mortgage lending in the UK would be £22 billion. This is 9% higher than June’s figure, and 14% higher than last July’s figure – the highest monthly total for 7 years.
Source: Council of Mortgage Lenders
New Mortgages granted – June Actual Figures
The Council of Mortgage Lenders reports (11th August) that gross mortgage lending for house purchase by home-owners in June totalled 61,000 loans, worth £10.6 billion. This is 21.8% higher than May’s in number and 24.7% higher in value. Compared to last June, it is down 1.0% in number but up 3.9% in value.
Of these, first-time buyer loans totalled 28,000, valued at £4.2 billion, which is up 22.0% in number and 23.5% in value on last month. This is 2.4% lower in number but unchanged in value, compared to last year.
Home movers’ loans totalled £6.4 billion, and numbered 32,700. These figures are up 25.5% in terms of value, and up 21.1% in number on last month. The figures are up 6.7% in value and up 0.3% in number on last year.
The number and value of remortgage loans also increased in the month – 31,600 loans worth £5.4 billion were made in June. These figures are 30.0% higher than last month’s in terms of volume and 30.8% higher in value. Over the year, these figures are up by 31.1% in number and up 34.2% in value.
Source: Council of Mortgage Lenders
Mortgages – First-time buyers and home-movers – June 2015.
The latest figures from CML (published 11th August 2015) show that first-time buyers’ mortgages average 80.1% loan-to-value, and are 3.40 times income. The proportion of their income that buyers are paying on interest is 10.0%, but this rises to 18.2% when including capital repayments.
For home-movers, the loan-to-value ratio is 73.2%, and is 3.12 times income. Income proportion spent on interest is 7.7%, which rises to 17.9% when including capital repayments.
Source: Council of Mortgage Lenders
Buy-to-Let Mortgages – June 2015
The Council of Mortgage Lenders reports that during June 2015, the total advanced on buy-to-let mortgages was £3.4 billion (22,100 loans). This is up 25.9% in value and up 22.8% in number than in May. Compared with last June, the number has risen by 38.1% and the value by 54.5%.
11,500 loans worth £1.8 billion were for remortgage – an increase of 29.2% in number and of 28.6% in value on the previous month. Compared to last June, the figures are up 53.3% in number and up 63.6% in value.
Buy-to-Let loans for house purchase totalled 10,400 worth £1.4 billion, a rise of 16.9% in number and of 16.7% in value on last month, and a rise of 23.8% in number and of 40.0% in value on June 2014.
Source: Council of Mortgage Lenders
New Mortgages granted – Second Quarter Actual Figures
The Council of Mortgage Lenders reports that gross mortgage lending for house purchase by home-owners in Q2 2015 totalled 160,100 loans, worth £27.5 billion. This is 21.6% higher than Q1 2015 in number and 22.8% higher in value. Compared to Q2 2014, it is down 7.7 in number and 4.2% in value.
In Q2, first-time buyer loans totalled 74,700, valued at £11.0 billion, which is up 21.7% in number and 22.2% in value on last quarter. This is 7.7% lower in number and 6.0% lower in value, compared to Q2 last year.
Home movers’ loans totalled £16.4 billion, and numbered 85.500. These figures are up 21.4% in terms of number, and up 22.0% in value on last quarter. However, the figures are down 7.7% in number and 3.5% in value on the second quarter last year.
The number and value of remortgage loans also increased in the quarter – 82,200 loans worth £13.2 billion were made in Q2. These figures are 8.6% higher than last quarter’s in terms of volume and 10.9% higher in value. Compared to Q2 last year, these figures are up by 8.6% in number and up 14.8% in value.
Source: Council of Mortgage Lenders
Outstanding Mortgages – June 2015
By the end of June, total outstanding mortgage lending in the UK amounted to £1.269 trillion. Last June it was £1,248 trillion. This averages to £114,535 for each of the 11.1 million households with mortgage debt.
Source: The Money Charity