Welsh first-time buyers spend less of their income on mortgage payments than rest of the UK
Published: 24 August 2012
First-time home buyers in Wales spent less of their income on their initial mortgage payments than the UK as a whole, according to new figures released today by the Council of Mortgage Lenders in Wales.
Welsh first-time buyers spent 19.1% of their income on their mortgage payments in the second quarter of 2012 compared to the 19.6% overall UK average, although this was up from 18.7% in the previous quarter.
Lending to first-time buyers in Wales grew by 11% compared to the first quarter of 2012 but remained steady compared to the second quarter of 2011. By value, first-time buyers in Wales borrowed £190 million in the second quarter, up from £180 million in the previous quarter but consistent with the same period in 2011.
In the second quarter of the year, 2,100 first-time buyers took out mortgages, up from 1,900 loans in the first three months of 2012 and 2,100 loans in the second quarter of 2011.
First-time buyers number of loans and average LTV, Wales
The increase in lending to first-time buyers and home movers led to a rise in overall house purchase lending.
Overall, 5,600 house purchase loans were advanced in Wales in the second quarter, up by 14% compared to the previous quarter and a 4% increase on the second quarter of 2011.
By value, house purchase loans totalled £600 million increasing from £530 million in the last quarter and £560 million in the second quarter of 2011.
Number of loans advanced for remortgage year-on-year % change UK v Wales
Notes to editors
1. The Council of Mortgage Lenders' members are banks, building societies and other lenders who together undertake around 95% of all residential mortgage lending in the UK. There are 11.2 million mortgages in the UK, with loans worth over £1.2 trillion.
2. Source: CML Regulated Mortgage Survey
3. The Council of Mortgage Lenders does not publish statistics for mortgage approvals. The data in our monthly Regulated Mortgage Survey and gross lending press releases relate to mortgage advances only. A mortgage approval is the firm offer to a customer of a specific amount of credit secured against a particular property. A mortgage advance is the total amount of loan actually provided to the buyer, by the lender.
4. Data for the third quarter of 2012 will be released on Monday 26 November 2012.