Mortgage Market Update

New Mortgages granted – February Estimates

The Council of Mortgage Lenders reported on 19th March that February’s estimated figure for gross mortgage lending in the UK would be £13.4 billion. This is 9% lower than January’s figure, and 9% down on last February’s figure.

Source: Council of Mortgage Lenders

New Mortgages granted – January Actual Figures

The Council of Mortgage Lenders reports that gross mortgage lending for house purchase by home-owners in January totalled 41,400 loans, worth £7.0 billion. This is 25.5% lower than December’s in number and 24.7% lower in value. Compared to last January, it is down 15.5% in number and 12.5% in value.

Of these, first-time buyer loans totalled 19,000, valued at £2.8 billion, which is down 26.9% in number and 26.3% in value on last month. This is 14.0% lower in number and 9.7% lower in value, compared to last year.

Home movers’ loans totalled £4.2 billion, and numbered 22,400. These figures are down 24.1% in terms of number, and down 23.6% in value on last month.  The figures are down 17.0% in number and 14.3% in value on last year.

The number and value of remortgage loans rose in the month – 25,600 loans worth £4.1 billion were made in January. These figures are 15.3% higher than last month’s in terms of volume and 20.6% higher in value. Over the year, these figures are down by 11.7% in number and down 4.7% in value.

Source: Council of Mortgage Lenders

Mortgages – First-time buyers and home-movers – January 2015.

The latest figures from CML (published 14th March 2015) show that first-time buyers’ mortgages average 83% loan-to-value, and are 3.38 times income. The proportion of their income that buyers are paying on interest is 10.7%, but this rises to 19.0% when including capital repayments.

For home-movers, the loan-to-value ratio is 72%, at 3.05 times income. Income proportion spent on interest is 8.2%, which rises to 18.3% when including capital repayments.

Source: Council of Mortgage Lenders

Buy-to-Let Mortgages – January 2015

The Council of Mortgage Lenders reports that during January 2015, the total advanced on buy-to-let mortgages was £2.5 billion (18,200 loans). This is the same as December’s in value but higher in number by 5.2%. Compared with last January, the number rose by 11.7% and the value by 13.6%.

10,400 loans worth £1.5 billion were for remortgage – an increase of 20.8% in number and an increase of 11.1% in value on the previous month. Compared to last January, the figures are up 27.9% in number and up 29.3% in value.

Buy-to-Let loans for house purchase totalled 7,600 worth £1.0 billion, a fall of 11.1% in number and 7.4% in value on last month, a fall of 5.6% in number but a rise of 5.3% in value on January 2014.

Source: Council of Mortgage Lenders

SRJ                                                                                         13.04.15

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