Mortgage Market Update – August ’16

New Mortgages granted – June Estimates
The Council of Mortgage Lenders reported on 21st July that June’s estimated figure for gross mortgage lending in the UK would reach £20.7 billion. This is 16% higher than last month’s figure, and 3% higher than last June’s figure. The report said that this is “the highest June figure in eight years”.
Source: Council of Mortgage Lenders

New Mortgages granted – May Actual Figures
On 13th July, the Council of Mortgage Lenders reported on May’s gross mortgage lending for house purchase.
Loans to home-owners in May totalled 53,800, worth £9.4 billion. This is up 13% on April’s in number and 15% in value. Compared to last May, it is up 5% in number and 8% in value.
First-time buyer loans totalled 27,500, valued at £4.3 billion, which is up 9% in number and 10% in value on last month. This is 16% higher in number and 23% higher in value, compared to last year.
Home movers’ loans totalled £5.1 billion, and numbered 26,300. These figures are up 19% in terms of value and 18% of number on last month.  The figures are down 2% in value and 5% in number on last year.
The number and value of remortgage loans increased – 30,900 loans worth £5.2 billion were made in May. These figures are 12% lower than last month’s in terms of volume and 15% lower in value. Over the year,  the figures are up by 25% in number and up 30% in value.
Director General of the CML, Paul Smee, stated that “For the second month running, first-time buyers borrowed more than home movers, the first time in 20 years that this has been the case”.
Source: Council of Mortgage Lenders

Mortgages – First-time buyers and home-movers – May 2016.
The latest figures from CML (published 13th July 2016) show that first-time buyers’ mortgages average £131,000, which is 84.6% loan-to-value, and 3.51 times income. The proportion of their gross income that buyers are paying to service their mortgages is 18.0% (when including capital repayments). The average age of a first-time buyer is 30 years.
For home-movers, the average loan is £166,000, with a loan-to-value ratio of 72.2%, and 3.25 times income. Income proportion spent on mortgage repayments is 18.0% when including capital repayments, and the average age is 39 years.
Source: Council of Mortgage Lenders

Buy-to-Let Mortgages – May 2016
The Council of Mortgage Lenders reports that during May, the total advanced to landlords on buy-to-let mortgages was £2.6 billion (16,600 loans). This is up 4% in value and up 3% in number than in April. Compared with last May, the number has fallen by 8% and the value by 4%.
Source: Council of Mortgage Lenders

Outstanding Mortgages – May 2016
By the end of May, the total outstanding mortgage lending in the UK amounted to £1.294 trillion. Last May it was £1,265 trillion. This averages to £116,804 for each of the 11.1 million households with mortgage debt.
Source: The Money Charity

All figures within this article are correct at the time of going to press, and are reproduced in good faith. No responsibility will be taken for any decisions made based on the information contained herein. Always seek professional advice.

*Back to August 2016 Newsletter*

©    PP