Mortgage Market Update – Nov 2015

New Mortgages granted – September Estimates
The Council of Mortgage Lenders reported on 22nd October that September’s estimated figure for gross mortgage lending in the UK would be £20 billion. This is 2% higher than August’s figure, and 12% higher than last September’s figure. “Mortgage lending is currently enjoying its best spell since 2008” the report said.

Source: Council of Mortgage Lenders

New Mortgages granted – August Actual Figures
The Council of Mortgage Lenders reports (13th October) that gross mortgage lending for house purchase by home-owners in August totalled 62,300 loans, worth £11.3 billion. This is 9.3% lower than July’s in number and 8.1% lower in value. Compared to last August, it is up 1.5% in number and up 6.6% in value.

Of these, first-time buyer loans totalled 27,500, valued at £4.2 billion, which is down 10.4% in number and 10.6% in value on last month. This is 1.9% higher in number and 5.0% higher in value, compared to last year.
Home movers’ loans totalled £7.1 billion, and numbered 34,800. These figures are down 6.6% in terms of value, and down 8.4% in number on last month. The figures are up 7.6% in value and up 1.2% in number on last year.
The number and value of remortgage loans decreased in the month – 25,600 loans worth £4.2 billion were made in August. These figures are 17.2% lower than last month’s in terms of volume and 17.6% lower in value. However, over the year, these figures are up by 11.3% in number and up 20.0% in value.

Source: Council of Mortgage Lenders

Mortgages – First-time buyers and home-movers – August 2015.
The latest figures from CML (published 13th October 2015) show that first-time buyers’ mortgages average £128,999, which is 84.2% loan-to-value, and 3.45 times income. The proportion of their income that buyers are paying on interest is 10.0%, but this rises to 18.5% when including capital repayments.

For home-movers, the average loan is £168,750, with a loan-to-value ratio of 71.9%, and 3.14 times income. Income proportion spent on interest is 7.5%, which rises to 18.1% when including capital repayments.

Source: Council of Mortgage Lenders

Buy-to-Let Mortgages – August 2015
The Council of Mortgage Lenders reports that during August 2015, the total advanced on buy-to-let mortgages was £3.4 billion (22,200 loans). This is down 10.5% in value and down 11.9% in number than in July. Compared with last August, the number has risen by 37.9% and the value by 47.8%.

11,500 loans worth £1.9 billion were for remortgage – a decrease of 12.9% in number and of 13.6% in value on the previous month. Compared to last August, the figures are up 51.3% in number and up 72.7% in value.
Buy-to-Let loans for house purchase totalled 10,500 worth £1.4 billion, a fall of 11.0% in number and of 12.5% in value on last month, but a rise of 26.5% in number and of 40.0% in value on August 2014.

Source: Council of Mortgage Lenders

Outstanding Mortgages – September 2015
By the end of September, the total outstanding mortgage lending in the UK amounted to £1.275 trillion. Last September it was £1,253 trillion. This averages to £115,137 for each of the 11.1 million households with mortgage debt.

Source: The Money Charity