Mortgage Market Update – Oct 2016

New Mortgages granted – August Estimates
The Council of Mortgage Lenders reported on 22nd September that August’s estimated figure for gross mortgage lending in the UK reached £22.5 billion. This is 7% higher than last month’s, and 15% higher than last year’s figure, making it the highest August figure since 2007.
Source: Council of Mortgage Lenders

New Mortgages granted – July Actual Figures
On 14th September, the Council of Mortgage Lenders reported on July’s gross mortgage lending for house purchase, on an unadjusted basis.
Loans to home-owners in July totalled 58,100, worth £10.6 billion. This is down 14% on June’s in number and 13% in value. Compared to last July, it is down 13% in number and 12% in value.
First-time buyer loans totalled 28,200, valued at £4.4 billion, which is down 17% in number and 19% in value on last month. This is 6% lower in number and 4% lower in value, compared to last year.
Home movers’ loans totalled £6.2 billion, and numbered 29,900. These figures are down 9% in terms of value and 11% of number on last month.  The figures are down 16% in value and 19% in number on last year.
The number and value of remortgage loans increased – 33,400 loans worth £6 billion were made in July. These figures are 3% higher than last month’s in terms of volume and 7% higher in value. Over the year,  the figures are up 10% in number and up 20% in value.
Director General of the CML, Paul Smee, stated that “It is hard to determine whether these figures reflect a first uncertain reaction to the referendum vote, or are a sign of a market which was already cooling.”
Source: Council of Mortgage Lenders

Mortgages – First-time buyers and home-movers – July 2016.
The latest figures from CML (published 14th September 2016) show that first-time buyers’ mortgages average £133,000, which is 85.0% loan-to-value, and 3.55 times income. The proportion of their gross income that buyers are paying to service their mortgages is 18.1% (when including capital repayments). The average age of a first-time buyer is 30 years.
For home-movers, the average loan is £171,400, with a loan-to-value ratio of 71.4%, and 3.29 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 – July 2016
The Council of Mortgage Lenders reports that during July, the total advanced to landlords on buy-to-let mortgages was £3 billion (18,600 loans). This is up 3% in value and up 1% in number than in June. Compared with last July, the number has fallen by 26% and the value by 21%.
Source: Council of Mortgage Lenders

Outstanding Mortgages – June 2016
By the end of July, the total outstanding mortgage lending in the UK amounted to £1.31 trillion. Last July it was £1,268 trillion. This averages to £118,253 for each of the 11.1 million households with mortgage debt.
Source: The Money Charity