Mortgage Market Update – July 2016

New Mortgages granted – May Estimates
The Council of Mortgage Lenders reported on 27th June 2016 that May’s estimated figure for gross mortgage lending in the UK would be £18.2 billion. This is 4% higher than last month’s figure, and 14% higher than last May’s figure. The report said that this is “the highest May figure since 2008”.
Source: Council of Mortgage Lenders

New Mortgages granted – April Actual Figures
On 15th June, the Council of Mortgage Lenders reported on April’s gross mortgage lending for house purchase.
Loans to home-owners in April totalled 47,300, worth £8.1 billion. This is down 31% on March’s in number and 40% in value. Compared to last April, it is down 5% in number and 4% in value.
First-time buyer loans totalled 25,100, valued at £3.9 billion, which is down 9% in number and 11% in value on last month. This is 7% higher in number and 15% higher in value, compared to last year.
Home movers’ loans totalled £4.3 billion, and numbered 22,200. These figures are down 53% in terms of value and 46% of number on last month.  The figures are down 14% in value and 15% in number on last year.
The number and value of remortgage loans increased – 34,800 loans worth £6 billion were made in April. These figures are 23% higher than last month’s in terms of volume and 25% higher in value. Over the year,  the figures are up by 30% in number and up 40% in value.
Director General of the CML, Paul Smee, stated that “Following the significant rises in activity in March … we expect the market to take several months to return to its previous levels”.
Source: Council of Mortgage Lenders

Mortgages – First-time buyers and home-movers – April 2016.
The latest figures from CML (published 15th June 2016) show that first-time buyers’ mortgages average £129,950, which is 84.6% loan-to-value, and 3.46 times income. The proportion of their gross income that buyers are paying to service their mortgages is 17.9% (when including capital repayments). The average age of a first-time buyer is 30 years.
For home-movers, the average loan is £162,995, with a loan-to-value ratio of 72.4%, and 3.26 times income. Income proportion spent on mortgage repayments is 18.1% when including capital repayments, and the average age is 39 years.
Source: Council of Mortgage Lenders

Buy-to-Let Mortgages – April 2016
The Council of Mortgage Lenders reports that during April, the total advanced to landlords on buy-to-let mortgages was £600 million (4,200 loans). This is down 86.0% in value and down 85.4% in number than in March. Compared with last April, the number has fallen by 51.2% and the value by 50.0%.
Source: Council of Mortgage Lenders

Outstanding Mortgages – April 2016
By the end of April, the total outstanding mortgage lending in the UK amounted to £1.292 trillion. Last April it was £1,264 trillion. This averages to £116,642 for each of the 11.1 million households with mortgage debt.
Source: The Money Charity

Mortgage Rates – April 2016
By the end of April, the average mortgage interest rate in the UK was 2.92%. For new loans, it was 2.41%. In March, the average rates were 2.94% and 2.5% respectively.
Source: The Money Charity

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