New Mortgages granted – October Estimates
The Council of Mortgage Lenders reported on 14th December that October’s estimated figure for gross mortgage lending in the UK was £21.3billion.
Source: Council of Mortgage Lenders
New Mortgages granted – October Actual Figures
On 14th December, the Council of Mortgage Lenders reported on October’s gross mortgage lending for house purchase, on an un-adjusted basis.
Loans to home-owners in October totalled 33,100, worth £5.7bn. This is up 9.8% in number and up 10.9% in value from September. Compared to the October 2015, it is up 4.8% in loan numbers and 7.0% in value.
First-time buyer loans totalled 30,100, valued at £4.6bn, which is down 8.3% in number and down 8.2% in value on the previous month. The figures are down 4% in loan number and are 2% lower in value compared to the same time last year.
Home movers’ loans totalled £7.2bn, and numbered 36,000. This is down 9.2% in terms of value and down 8% in terms of numbers on September’s figures. The figures are down significantly at -18.1% in value and -19.7% in number on the previous year.
The number and value of remortgage loans increased; 33,100 loans worth £5.7bn were granted in October.  These figures are 9.8% higher than the previous month’s in terms of volume and 10.9% up in value. Compared with October 2015, the figures are up 4.8% in number and 7% in value.
Director General of the CML, Paul Smee, stated that “Buy-to-let house purchase lending remains weak following the change to stamp duty on second properties in April. With lenders now tightening affordability criteria ahead of the Prudential Regulation Authority’s stress tests and the forthcoming tax relief changes next year, these lower volumes are likely to be the ‘new normal’.
Home-owner and buy-to-let remortgage lending, however, has recovered and is running at its strongest levels since 2009. This appears to be linked to borrowers taking advantage of the re-pricing of mortgages following the base rate cut.â€
Source: Council of Mortgage Lenders
Mortgages – First-time buyers and home-movers – October 2016
The latest figures from CML (published 14th December 2016) show that first-time buyers’ mortgages average £133,200, which is 84.6% loan-to-value, and 3.47 times income. The proportion of their gross income that buyers are paying to service their mortgages is 17.6% (when including capital repayments). The average age of a first-time buyer remains 30 years.
For home-movers, the average loan is £171,700, with a loan-to-value ratio of 72%, and 3.17 times income. Income proportion spent on mortgage repayments is 17.6% when including capital repayments, and the average age is 39 years.
Source: Council of Mortgage Lenders
Buy-to-Let Mortgages – October 2016
The Council of Mortgage Lenders reports that during October, the total advanced to landlords on buy-to-let mortgages was £2.2 billion (13,200 loans). This is up 5.3% in value and up 6.1% in number of loans for October. Both figures have fallen by 7.6% in number of loans and 9.1% in value compared to October 2015.
Source: Council of Mortgage Lenders
Outstanding Mortgages – October 2016
At the end of October, outstanding mortgage lending in the UK totalled £1.318 trillion; up from £1.278 trillion compared to the previous 12 months. This equates to an estimated average outstanding mortgage of £118,992 for 11.1 million households in the UK during October.
Source: The Money Charity