Mortgage Market Update – November 2016

New Mortgages granted – September Estimates

The Council of Mortgage Lenders reported on 20th October that September’s estimated figure for gross mortgage lending in the UK reached £20.5 billion. This is 7% lower than last month’s, and 2% higher than last year’s figure, making it the highest September figure since 2007.

Source: Council of Mortgage Lenders
 
New Mortgages granted – August Actual Figures

On 12th October, the Council of Mortgage Lenders reported on August’s gross mortgage lending for house purchase, on an unadjusted basis.
 
Loans to home-owners in August totalled 66,000, worth £12.2bn. This is up 13% in number and up 14% in value from July.  Compared to the August 2015, it is up 9% in loan numbers and 11% in value.

First-time buyer loans totalled 31,800, valued at £5.1bn, which is up 12% in number and up 13% in value on last month. The figures are up 19% in loan number and 24% higher in value compared to last year.
 
Home movers’ loans totalled £7.1bn, and numbered 34,200.  These figures are also up 15% in terms of value and 14% in terms of numbers on last month.  The figures are up 3% in value and 1% in number on last year.
 
The number and value of remortgage loans increased – 33,400 loans worth £5.9bn were made in July.  These figures are 4% higher than last month’s in terms of volume but 2% down in value.  Compared with August 2015, the figures are up 40% in number and 41% in value.
 
Director General of the CML, Paul Smee, stated that “House purchase activity bounced back from a dip in July, reflecting resilience in first-time buyer activity.  Mortgage rates remain at or close to historic lows, and the re-pricing of mortgages following August’s base rate cut should help to underpin a continuing, strong appetite for home-ownership over the coming months. 

Buy-to-let by contrast continues to operate at lower levels five months after the stamp duty change on second properties. This appears to be a long-term trend, and with lenders potentially tightening affordability checks ahead of the tax changes in April 2017, activity on the buy-to-let house purchase side may well remain at current levels.”

Source: Council of Mortgage Lenders
 
Mortgages – First-time buyers and home-movers – August 2016.

The latest figures from CML (published 12th October 2016) show that first-time buyers’ mortgages average £136,300, which is 85.0% loan-to-value, and 3.45 times income. The proportion of their gross income that buyers are paying to service their mortgages is 18.0% (when including capital repayments). The average age of a first-time buyer is 30 years.

For home-movers, the average loan is £175,000, with a loan-to-value ratio of 71.2%, and 3.14 times income. Income proportion spent on mortgage repayments is 17.9% when including capital repayments, and the average age is 39 years.
Source: Council of Mortgage Lenders
 
Buy-to-Let Mortgages – August 2016
The Council of Mortgage Lenders reports that during August, the total advanced to landlords on buy-to-let mortgages was £3 billion (19,300 loans). This is unchanged in value but up 5.5% in number on July. Compared with August 2015, both figures have fallen by 12.67% in number of loans and 9.1% in value.
 
Source: Council of Mortgage Lenders
 
Outstanding Mortgages – August 2016
By the end of August, the total outstanding mortgage lending in the UK amounted to £1.311 trillion. Last August it was £1,272 trillion. This averages to £118,341 for each of the 11.1 million households with mortgage debt.
Source: The Money Charity
 
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