Mortgage Market Update

New Mortgages granted – April Estimates

The Council of Mortgage Lenders reported on 21st May that April’s estimated figure for gross mortgage lending in the UK would be £16 billion. This is 4% lower than March’s figure, but 1% up on last April’s figure.

Source: Council of Mortgage Lenders

New Mortgages granted – March Actual Figures

The Council of Mortgage Lenders reports that gross mortgage lending for house purchase by home-owners in March totalled 48,200 loans, worth £8.2 billion. This is 16.4% higher than February’s in number and 17.1% higher in value. Compared to last March, it is down 3.8% in number but up 3.8% in value.

Of these, first-time buyer loans totalled 23,000, valued at £3.4 billion, which is up 20.4% in number and 21.4% in value on last month. This is 5.0% lower in number but 3.0% higher in value, compared to last year.

Home movers’ loans totalled £4.9 billion, and numbered 25,200. These figures are up 13.5% in terms of number, and up 16.7% in value on last month.  The figures are down 2.7% in number but up 6.5% in value on last year.

The number and value of remortgage loans also increased in the month – 26,600 loans worth £4.2 billion were made in March. These figures are 19.3% higher than last month’s in terms of volume and 23.5% higher in value. Over the year, these figures are up by 5.6% in number and up 13.5% in value.

Source: Council of Mortgage Lenders

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

The latest figures from CML (published 19th May 2015) show that first-time buyers’ mortgages average 80.7% loan-to-value, and are 3.36 times income. The proportion of their income that buyers are paying on interest is 10.6%, but this rises to 18.8% when including capital repayments.

For home-movers, the loan-to-value ratio remains steady at 72.9%, and is 3.07 times income. Income proportion spent on interest is 8.1%, which rises to 18.5% when including capital repayments.

Source: Council of Mortgage Lenders

Buy-to-Let Mortgages – March 2015

The Council of Mortgage Lenders reports that during March 2015, the total advanced on buy-to-let mortgages was £2.7 billion (18,200 loans). This is up 11.7% in value and up 12.5% in number than in February. Compared with last March, the number has risen by 21.3% and the value rose by 35.0%.

9,400 loans worth £1.4 billion were for remortgage – an increase of 14.6% in number and of 7.7% in value on the previous month. Compared to last March, the figures are up 28.8% in number and up 27.3% in value.

Buy-to-Let loans for house purchase totalled 8,600 worth £1.2 billion, a rise of 7.5% in number and of 20.0% in value on last month, and a rise of 13.2% in number and of 33.3% in value on March 2014.

Source: Council of Mortgage Lenders

New Mortgages granted – First Quarter Actual Figures

The Council of Mortgage Lenders reports that gross mortgage lending for house purchase by home-owners in Q1 2015 totalled 131,800 loans, worth £22.4 billion. This is 24% lower than Q4 2014 in number and 23% lower in value. Compared to Q1 2014, it is down 11% in number and 5% in value.

In Q1, first-time buyer loans totalled 61,300, valued at £9 billion, which is down 24% in number and 23% in value on last quarter. This is 11% lower in number and  5% lower in value, compared to Q1 last year.

Home movers’ loans totalled £13.5 billion, and numbered 70.400. These figures are down 55% in terms of number, and down 22% in value on last quarter.  The figures are down 11% in number and 5% in value on the first quarter last year.

The number and value of remortgage loans increased in the quarter – 75,400 loans worth £11.8 billion were made in Q1. These figures are 3% higher than last quarter’s in terms of volume and 6% higher in value. Compared to Q1 last year, these figures are down by 5% in number but up 2% in value.

Source: Council of Mortgage Lenders

Outstanding Mortgages – March 2015

By the end of March, total outstanding mortgage lending in the UK amounted to £1.304 trillion. Last March it was £1,284 trillion. This averages to £117,704 for each of the 11.1 million households with mortgage debt.

Source: The Money Charity

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