Mortgage Market Update – April 2016

New Mortgages granted – February Estimates
The Council of Mortgage Lenders reported on 17th March that February’s estimated figure for gross mortgage lending in the UK would be £17.6 billion. This is 5% lower than last month’s figure, but 30% higher than last February’s figure. “Lending continues the year on a positive note” the report said.
Source: Council of Mortgage Lenders

New Mortgages granted – January Actual Figures
On 10th March, the Council of Mortgage Lenders reported on January’s gross mortgage lending for house purchase.
Loans to home-owners in January totalled 46,200, worth £8.4 billion. This is down 27% on December’s in number and 25% in value. Compared to last January, it is up 5% in number and up 12% in value.
First-time buyer loans totalled 21,400, valued at £3.3 billion, which is down 28% in number and 27% in value on last month. However, this is 6% higher in number and 14% higher in value, compared to last year.
Home movers’ loans totalled £5.1 billion, and numbered 24,800. These figures are down 26% in terms of value, and down 24% in number on last month.  The figures are up 11% in value and up 3% in number on last year.
The number and value of remortgage loans increased – 33,100 loans worth £5.8 billion were made in January. These figures are 28% higher than last month’s in terms of volume and 35% higher in value. Over the year,  the figures are up by 19% in number and up 32% in value.
Source: Council of Mortgage Lenders

Mortgages – First-time buyers and home-movers – January 2016.
The latest figures from CML (published 10th March 2016) show that first-time buyers’ mortgages average £128,960, which is 84.3% loan-to-value, and 3.45 times income. The proportion of their income that buyers are paying on interest is 9.5%, but this rises to 18.2% when including capital repayments.
For home-movers, the average loan is £166,794, with a loan-to-value ratio of 72.7%, and 3.17 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 – January 2016
The Council of Mortgage Lenders reports that during January, the total advanced on buy-to-let mortgages was £3.7 billion (23,100 loans). This is up 9% in value and up 3% in number than in December. Compared with last January, the number has risen by 31% and the value by 42%. 13,400 of these loans were for remortgage
Source: Council of Mortgage Lenders

Outstanding Mortgages – January 2016
By the end of January, the total outstanding mortgage lending in the UK amounted to £1.281 trillion. Last January it was £1,257 trillion. This averages to £115,672 for each of the 11.1 million households with mortgage debt.
Source: The Money Charity

*Back to April 2016 Newsletter*

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