Mortgage Market Update – May 2016

New Mortgages granted – March Estimates
The Council of Mortgage Lenders reported on 21st April that March’s estimated figure for gross mortgage lending in the UK would be £25.7 billion. This is 43% higher than last month’s figure, and 59% higher than last March’s figure. The report said that lending “was driven by a surge to beat the second property stamp duty surcharge deadline”.
Source: Council of Mortgage Lenders

New Mortgages granted – February Actual Figures
On 13th April, the Council of Mortgage Lenders reported on February’s gross mortgage lending for house purchase.
Loans to home-owners in January totalled 48,000, worth £8.7 billion. This is up 4% on January’s both in number and in value. Compared to last February, it is up 12% in number and up 21% in value.
First-time buyer loans totalled 22,000, valued at £3.4 billion, which is up 3% both in number and in value on last month. However, this is 11% higher in number and 21% higher in value, compared to last year.
Home movers’ loans totalled £5.3 billion, and numbered 26,000. These figures are up 4% both in terms of value and number on last month. The figures are up 20% in value and up 14% in number on last year.
The number and value of remortgage loans decreased – 28,400 loans worth £4.8 billion were made in February. These figures are 15% lower than last month’s in terms of volume and 17% lower in value. However, over the year, the figures are up by 24% in number and up 37% in value.
Source: Council of Mortgage Lenders

Mortgages – First-time buyers and home-movers – February 2016.
The latest figures from CML (published 13th April 2016) show that first-time buyers’ mortgages average £129,000, which is 83% loan-to-value, and 3.46 times income. The proportion of their income that buyers are paying to service their mortgages is 18.1% (when including capital repayments).
For home-movers, the average loan is £168,000, with a loan-to-value ratio of 73%, and 3.21 times income. Income proportion spent on mortgage repayments is 18.1% when including capital repayments.
Source: Council of Mortgage Lenders

Buy-to-Let Mortgages – February 2016
The Council of Mortgage Lenders reports that during February, the total advanced on buy-to-let mortgages was £3.7 billion (23,700 loans). This is unchanged in value and up 1% in number than in January. Compared with last February, the number has risen by 47% and the value by 61%. 13,100 of these loans were for remortgage, worth £2.2 billion.
Source: Council of Mortgage Lenders

Outstanding Mortgages – March 2016
By the end of March, the total outstanding mortgage lending in the UK amounted to £1.291 trillion. Last March it was £1,262 trillion. This averages to £116,620 for each of the 11.1 million households with mortgage debt.
Source: The Money Charity

*Back to May 2016 Newsletter*

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