Mortgage Market Update – Jan 2016

New Mortgages granted – November Estimates
The Council of Mortgage Lenders reported on 17th December that November’s estimated figure for gross mortgage lending in the UK would be £19.9 billion. This is 9% lower than October’s figure, and 23% higher than last November’s figure. “Lending is set to finish the year stronger than it started” the report said.
Source: Council of Mortgage Lenders

New Mortgages granted – October Actual Figures
The Council of Mortgage Lenders reports (15th December) that gross mortgage lending for house purchase by home-owners in October totalled 65,300 loans, worth £11.6 billion. This is up 8.5% from September’s in number and 7.4% higher in value. Compared to last October, it is up 3.3% in number and up 10.5% in value.
Of these, first-time buyer loans totalled 29,900, valued at £4.6 billion, which is up 8.3% in number and 9.5% in value on last month. This is 3.5% higher in number and 9.5% higher in value, compared to last year.
Home movers’ loans totalled £7.1 billion, and numbered 35,400. These figures are up 7.6% in terms of value, and up 8.6% in number on last month.  However, the figures are up 3.2% in value and up 12.7% in number on last year.
The number and value of remortgage loans increased in the month – 32,100 loans worth £5.5 billion were made in October. These figures are 5.6% higher than last month’s in terms of volume and 10.0% higher in value. Over the year, these figures are up by 18.9% in number and up 34.1% in value.
Source: Council of Mortgage Lenders

Mortgages – First-time buyers and home-movers – October 2015.
The latest figures from CML (published 15th December 2015) show that first-time buyers’ mortgages average £128,060, which is 83.7% loan-to-value, and 3.47 times income. The proportion of their income that buyers are spending on interest is 9.8%, but this rises to 18.4% when including capital repayments.
For home-movers, the average loan is £165,295, with a loan-to-value ratio of 72.4%, and 3.17 times income. Income proportion spent on interest is 7.6%, which rises to 18.2% when including capital repayments.
Source: Council of Mortgage Lenders

Buy-to-Let Mortgages – October 2015
The Council of Mortgage Lenders reports that during October 2015, the total advanced on buy-to-let mortgages was £3.8 billion (24,800 loans). This is up 2.7% in value and up 3.8% in number than in September. Compared with last October, the number has risen by 27.8% and the value by 35.7%.
13,300 loans worth £2.2 billion were for remortgage – an increase of 5.6% in number and of 4.8% in value on the previous month. Compared to last October, the figures are up 38.5% in number and up 46.7% in value.
Buy-to-Let loans for house purchase totalled 11,400 worth £1.6 billion, a rise of 1.8% in number and of 6.7% in value on last month, and a rise of 17.5% in number and of 33.3% in value on October 2014.
Source: Council of Mortgage Lenders

*Back to January 2016 Newsletter*

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