Mortgage Market Update – Oct 2015

New Mortgages granted – August Estimates
The Council of Mortgage Lenders reported on 17th September that August’s estimated figure for gross mortgage lending in the UK would be £20 billion. This is 8% lower than July’s figure, but 12% higher than last August’s figure. This is “the highest August figure since 2007” they stated.
Source: Council of Mortgage Lenders

New Mortgages granted – July Actual Figures
The Council of Mortgage Lenders reports (15th September) that gross mortgage lending for house purchase by home-owners in July totalled 67,800 loans, worth £12.2 billion. This is 7.4% higher than June’s in number and 10.9% higher in value. Compared to last July, it is up 4.8% in number and up 8.9% in value.
Of these, first-time buyer loans totalled 30,200, valued at £4.6 billion, which is up 2.7% in number and 4.5% in value on last month. This is 4.5% higher in number and 7.0% higher in value, compared to last year.
Home movers’ loans totalled £7.6 billion, and numbered 37,700. These figures are up 15.2% in terms of value, and up 11.9% in number on last month.  The figures are up 10.1% in value and up 5.3% in number on last year.
The number and value of remortgage loans decreased in the month – 31,000 loans worth £5.1 billion were made in July. These figures are 5.5% lower than last month’s in terms of volume and 3.8% lower in value. However, over the year, these figures are up by 26.0% in number and up 34.2% in value.
Source: Council of Mortgage Lenders

Mortgages – First-time buyers and home-movers – July 2015.
The latest figures from CML (published 15th September 2015) show that first-time buyers’ mortgages average £128,000, which is 84.3% loan-to-value, and 3.41 times income. The proportion of their income that buyers are paying on interest is 10.1%, but this rises to 18.5% when including capital repayments.
For home-movers, the average loan is £166,280, with a loan-to-value ratio of 72.1%, and 3.12 times income. Income proportion spent on interest is 7.6%, which rises to 18.1% when including capital repayments.
Source: Council of Mortgage Lenders

Buy-to-Let Mortgages – July 2015
The Council of Mortgage Lenders reports that during July 2015, the total advanced on buy-to-let mortgages was £3.8 billion (25,200 loans). This is up 11.8% in value and up 14.0% in number than in June. Compared with last July, the number has risen by 39.2% and the value by 52.0%.
13,200 loans worth £2.2 billion were for remortgage – an increase of 14.8% in number and of 22.2% in value on the previous month. Compared to last July, the figures are up 53.5% in number and up 69.2% in value.
Buy-to-Let loans for house purchase totalled 11,800 worth £1.6 billion, a rise of 13.5% in number and of 14.3% in value on last month, and a rise of 26.9% in number and of 33.3% in value on July 2014.
Source: Council of Mortgage Lenders

Outstanding Mortgages – July 2015
By the end of July, total outstanding mortgage lending in the UK amounted to £1.269 trillion. Last July it was £1,250 trillion. This averages to £114,593 for each of the 11.1 million households with mortgage debt.
Source: The Money Charity