Mortgage Market Update – Feb 16

New Mortgages granted – December Estimates
The Council of Mortgage Lenders reported on 21st January that December’s estimated figure for gross mortgage lending in the UK would be £19.9 billion. This is 3% lower than November’s figure, but 23% higher than last December’s figure. “Lending ended the year stronger than it started” the report said.
Source: Council of Mortgage Lenders

New Mortgages granted – November Actual Figures
The Council of Mortgage Lenders reports (14th January) that gross mortgage lending for house purchase by home-owners in November totalled 60,100 loans, worth £10.7 billion. This is down 8.2% from October’s in number and 9.3% lower in value. Compared to last November, it is up 9.3% in number and up 17.6% in value.
Of these, first-time buyer loans totalled 27,900, valued at £4.2 billion, which is down 7.9% in number and 8.7% in value on last month. This is 10.3% higher in number and 13.5% higher in value, compared to last year.
Home movers’ loans totalled £6.5 billion, and numbered 32,300. These figures are down 9.7% in terms of value, and down 10.0% in number on last month.  However, the figures are up 20.4% in value and up 8.8% in number on last year.
The number and value of remortgage loans also decreased in the month – 29,300 loans worth £4.9 billion were made in November. These figures are 9.1% lower than last month’s in terms of volume and 14.0% lower in value. Over the year, these figures are up by 24.2% in number and up 36.1% in value.
Source: Council of Mortgage Lenders

Mortgages – First-time buyers and home-movers – November 2015.
The latest figures from CML (published 14th January 2015) show that first-time buyers’ mortgages average £128,000, which is 83.5% loan-to-value, and 3.46 times income. The proportion of their income that buyers are paying on interest is 9.7%, but this rises to 18.3% when including capital repayments.
For home-movers, the average loan is £165,240, with a loan-to-value ratio of 72.7%, and 3.17 times income. Income proportion spent on interest is 7.7%, which rises to 18.2% when including capital repayments.
Source: Council of Mortgage Lenders

Buy-to-Let Mortgages – November 2015
The Council of Mortgage Lenders reports that during November 2015, the total advanced on buy-to-let mortgages was £3.5 billion (23,300 loans). This is down 7.9% in value and down 5.7% in number than in October. Compared with last November, the number has risen by 34.7% and the value by 45.8%.
13,100 loans worth £2.1 billion were for remortgage – a decrease of 0.8% in number and of 4.5% in value on the previous month. Compared to last November, the figures are up 50.6% in number and up 61.5% in value.
Buy-to-Let loans for house purchase totalled 10,000 worth £1.3 billion, a fall of 11.5% in number and of 18.8% in value on last month, but a rise of 17.6% in number and of 30.0% in value on November 2014.
Source: Council of Mortgage Lenders

Outstanding Mortgages – December 2015
By the end of December, the total outstanding mortgage lending in the UK amounted to £1.277 trillion. Last December it was £1.255 trillion. This averages to £115,669 for each of the 11.1 million households with mortgage debt.
Source: The Money Charity

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