Mortgage Market Update – May

Mortgage Lending by the Major UK Lenders

According to the latest quarterly publication from the Bank of England, (Trends in Lending April 2015, covering the quarter to February 2015), the major UK lenders comprising Banco Santander, Barclays, HSBC, Lloyds Banking Group, Nationwide and Royal Bank of Scotland, the number of mortgage approvals for house purchase was 60.3k in December 2014, 60.7k in January 2015 and 61.8k in February 2015. Remortgaging numbered 32.7k, 31.6k and 32.1k respectively.

Source: Bank of England

New Mortgages granted – March Estimates

The Council of Mortgage Lenders reported on 23rd April that March’s estimated figure for gross mortgage lending in the UK would be £16.5 billion. This is 21% higher than February’s figure, and 7% up on last March’s figure.

Source: Council of Mortgage Lenders

New Mortgages granted – February Actual Figures

The Council of Mortgage Lenders reports that gross mortgage lending for house purchase by home-owners in February totalled 40,600 loans, worth £6.8 billion. This is 1.5% lower than January’s in number and 2.9% lower in value. Compared to last February, it is down 16.3% in number and 12.8% in value.

Of these, first-time buyer loans totalled 18,700, valued at £2.7 billion, which is down 1.1% in number and 3.6% in value on last month. This is 16.1% lower in number and 12.9% lower in value, compared to last year.

Home movers’ loans totalled £4.1 billion, and numbered 21,900. These figures are down 1.8% in terms of number, and down 2.4% in value on last month.  The figures are down 16.4% in number and 12.8% in value on last year.

The number and value of remortgage loans declined in the month – 21,500 loans worth £3.3 billion were made in February. These figures are 16.0% lower than last month’s in terms of volume and 19.5% lower in value. Over the year, these figures are down by 13.7% in number and down 10.8% in value.

Source: Council of Mortgage Lenders

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

The latest figures from CML (published 14th April 2015) show that first-time buyers’ mortgages average 81% loan-to-value, and are 3.37 times income. The proportion of their income that buyers are paying on interest is 10.8%, but this rises to 19.0% when including capital repayments.

For home-movers, the loan-to-value ratio remains steady at 72%, and is 3.03 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 – February 2015

The Council of Mortgage Lenders reports that during February 2015, the total advanced on buy-to-let mortgages was £2.2 billion (15,900 loans). This is down 12% in value and down 13% in number than in January. Compared with last February, the number rose by 11% and the value rose by 16%.

8,400 loans worth £1.3 billion were for remortgage – a decrease of 19.2% in number and of 13.3% in value on the previous month. Compared to last February, the figures are up 22.8% in number and up 31.3% in value.

Buy-to-Let loans for house purchase totalled 7,400 worth £0.9 billion, a fall of 2.6% in number and of 10.0% in value on last month, but a rise of 0.8% in number and of 3.4% in value on February 2014.

Source: Council of Mortgage Lenders

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