From 1st July the Council of Mortgage Lenders is integrated into a new trade association, UK Finance. For the time being, all UKF mortgage information will continue to be published on this website, and UKF member-only mortgage information will only be available here.

UK Finance represents around 300 firms in the UK providing credit, banking, markets and payment-related services. The new organisation takes on most of the activities previously carried out by the Asset Based Finance Association, the British Bankers’ Association, the Council of Mortgage Lenders, Financial Fraud Action UK, Payments UK and the UK Cards Association. Please go to www.ukfinance.org.uk for wider content and updates from UK Finance.

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Borrowing by movers up 16 per cent in Northern Ireland

Published: 23 November 2017

In the third quarter of 2017 in Northern Ireland:

  • Home buyers borrowed £480 million, up 12 per cent on the second quarter of 2017 and 20 per cent compared to the third quarter last year. There were 4,300 loans taken out for house purchase, up 10 per cent quarter-on-quarter and 19 per cent compared to a year ago.
  • First-time buyers borrowed £260 million, up eight per cent on the second quarter and 24 per cent on the third quarter last year. This totalled 2,600 loans, up eight per cent quarter-on-quarter and 24 per cent year-on-year.
  • Home movers borrowed £220 million, up 16 per cent both quarter-on-quarter and year-on-year. This totalled 1,700 loans, up 13 per cent both quarter-on-quarter and year-on-year.
  • Remortgaging activity totalled £220 million, unchanged on the second quarter of 2017 but 10 per cent higher than in the same quarter last year. This came to 2,100 loans, the same total quarter-on-quarter but 11 per cent higher than a year ago.

Commenting on the data, Derek Wilson, the chair of UK Finance’s Northern Ireland Mortgage Committee said:

“Lending for house purchase picked up again in the third quarter and is now at its highest level for a decade.  First-time buyers continue to borrow more than movers, with lower house prices helping to boost activity in what remains the most affordable region in the UK.  More than half of first-time buyers managed to take out a mortgage for less than the stamp duty threshold of £125,000, either through purchasing outright or through co-ownership.”

Affordability in Northern Ireland

First-time buyer affordability in Northern Ireland was unchanged in the third quarter.  First-time buyers typically borrowed £99,000 (£139,500 in the UK overall), up from £96,950 in the previous quarter.  The average household income was £32,622 (£41,009 in the UK overall), up from £32,245.  The typical income multiple in Northern Ireland of 2.94 (the same as in the second quarter) also compared favourably to the UK average of 3.61.

Home movers borrowed an average in the third quarter of £116,413 (£180,995 in the UK overall), down from £119,000 in the second quarter.  The average household income of home movers was £45,376 (£55,865 in the UK overall), down from £45,486.  This meant that the typical home mover income multiple in the third quarter was 2.65, compared to 2.59 in the preceding quarter and the UK average of 3.39.

Chart 1: Number of loans to home owners, 2007-2017

Table 1: Number of loans for house purchase and remortgaging in the third quarter

  House purchase Remortgage
FTBs Movers  
Q3 2016

2,100

1,500

1,900

Q2 2017

2,400

1,500

2,100

Q3 2017

2,600

1,700

2,100

Change compared to Q2 2017

8.3%

13.3%

0.0%

Change compared to Q3 2016

23.8%

13.3%

10.5%

Table 2: Value of loans for house purchase and remortgaging in the third quarter

  House purchase (£m) Remortgage (£m)
FTBs Movers  
Q3 2016

210

190

200

Q2 2017

240

190

220

Q3 2017

260

220

220

Change compared to Q2 2017

8.3%

15.8%

0.0%

Change compared to Q3 2016

23.8%

15.8%

10.0%

Affordability infographic

Ends

For further information please contact:
Press Office
020 7416 6750
press@ukfinance.org.uk

Notes to editors

    1. UK Finance is a new trade association which was formed on 1 July 2017 to represent the finance and banking industry operating in the UK. It represents around 300 firms in the UK providing credit, banking, markets and payment-related services. The new organisation brings together activities previously carried out by the Asset Based Finance Association, the British Bankers’ Association, the Council of Mortgage Lenders, Financial Fraud Action UK, Payments UK and the UK Cards Association.