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.

  1. Home
  2. News
  3. Press releases
  4. First-time buyer lending in Wales up 21% in third quarter

First-time buyer lending in Wales up 21% in third quarter

Published: 25 November 2015

New CML data on the characteristics of lending in Wales in the third quarter of 2015 outlining mortgage lending to first-time buyers, home movers and remortgagors.

Lending in the third quarter 2015:

  • First-time buyers took out 3,700 loans in Wales - up 16% on the previous quarter and on Q3 2013. First-time buyers in the period borrowed £410 million - up 21% on the previous quarter and the same quarter last year.
  • There were 3,900 home-mover loans in the third quarter, up 8% on the previous quarter and 3% more than in quarter three 2014. Total value of these loans was £550 million, up 12% on the second quarter and up 6% on the third quarter 2014.
  • Remortgage lending in the quarter in Wales grew quarter-on-quarter and year-on-year by volume and by value. 

Julie-Ann Haines, CML chair for Wales, commented:

House purchase and remortgage activity in Wales continued to show positive growth for the second quarter in a row, after a subdued start to the year. Affordability is better in Wales than for the UK overallWe would expect this upward trend to continue to close out the year given the competitive mortgage deals available as a result of interest rates remaining low coupled with government schemes like Help to Buy Cymru assisting demand. 

Chart 1: Loans to home-owners and remortgage by value in Wales

 20151125 Wales Q3 2015 Chart 1

Source: CML Regulated Mortgage Survey (April 2005 onwards), CML Economics

Download the data

Chart 2: Number of loans for house purchase and proportion of FTBs and home-movers in Wales

 20151125 Wales Q3 2015 Chart 2

Source: CML Regulated Mortgage Survey (April 2005 onwards)

Download the data

Table 1: Second quarter lending for home-owner house purchase and remortgage

  Number of house purchase loans % change Value of house purchase loans, £m % change Number of remortgage loans % change Value of remortgage loans, £m % change
Third
quarter 2015
7,700       3,800   420  
Change compared to second quarter 2015 6,700 +14.9% 3,600 +15.7% 3,600 +5.6% 380 +10.5%
Change compared to third quarter 2014 7,000 +10.0% 3,100 +12.9% 3,100 +22.6% 330 +27.3%

Source: CML Regulated Mortgage Survey (April 2005 onwards)

Lending for house purchase and remortgage

House purchase lending in Wales was at its highest quarterly level since the last quarter of 2007. Remortgage lending also saw increases with the most amount borrowed for remortgage in a quarter since mid-2011.

The rise in house purchase activity was evenly split with first-time buyers making up 48% of the total and home movers taking up the remaining 52%. 

Table 2: Third quarter first-time buyer lending and affordability measures

 

Number of loans

% change

Value of loans £m

% change

Loan size (£)

Income (£)

Loan-to-value

Loan-to-income

Interest payment as % of income

Capital and interest payment as % of   income

Third
quarter
2015

3,700

 

410

 

104,000

32,854

85.3%

3.25

10.3%

17.6%

Second
quarter
2015

3,200

+15.6%

 340

+20.6%

102,265

32,500

85.0%

3.18

10.3%

17.7%

Third 
quarter
2014

3,200

+15.6%

 340

+20.6%

100,600

31,868

85.0%

3.23

11.6%

18.2%

Source: CML Regulated Mortgage Survey (April 2005 onwards)

Lending to first-time buyers

First-time buyers in Wales typically borrowed 3.25 times their gross income, up from 3.18 the previous quarter but less than the UK average of 3.45.

The typical loan size for first-time buyers was £104,000 in the third quarter, up from £102,265 in the second quarter. The typical gross income of a first-time buyer household was £32,854 also up compared to £32,500 in the second quarter.

First-time buyers' payment burden in the third quarter was 17.6% of gross income to cover capital and interest payments, down on the second quarter's 17.7% and lower than the 18.3% UK average. This is the lowest percentage of income this has been since we began tracking this metric in Wales in 2005.

Table 3: Third quarter home mover lending and affordability measures

 

Number of loans

 

Value of loans £m

 

Loan size (£)

Income (£)

Loan-to-value

Loan-to-income

Interest payment as % of income

Capital and interest payment as % of   income

Third
quarter
2015

3,900

 

550 

 

129,150

46,203

75.1%

2.86

7.3%

17.1%

Second 
quarter 
2015

3,600 

+8.3%

 490

+12.2%

126,000

46,355

75.1%

2.78

7.5%

17.0%

Third 
quarter 
2014

 3,800

+2.6%

510

+7.8%

121,691

46,000

74.1%

2.79

8.3%

17.6%

Source: CML Regulated Mortgage Survey (April 2005 onwards)

Lending to home movers

Home movers in Wales typically borrowed 2.86 times their gross income, up from 2.78 the previous quarter but lower than the UK average of 3.16.

The typical loan size for home movers was £129,150 in the third quarter, up from 126,000 from the previous quarter, but 25% lower than the £167,495 UK average. The typical gross income of a home movers' household was £46,203, changed slightly compared to £46,355 in the second quarter.

Home movers' payment burden in the third quarter saw them spend 17.1% of their gross household income to cover capital and interest payments, a slight change from 17.0% in the second quarter, but lower than the 18.1% UK average. This is the second lowest quarterly level this has been, after the last quarter, since we began tracking this metric in 2005.

Chart 3: Number of home-owner remortgage loans in Wales

 20151125 Wales Q3 2015 Chart 3

Source: CML Regulated Mortgage Survey (April 2005 onwards)

Download the data

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 11.1 million mortgages in the UK, with loans worth over £1.3 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. Please see the mortgage statistics timeline on our website for further information.

4. Data for the fourth quarter of 2015 will be released on Wednesday 24 February 2015.

Contact us

Gareth Hill

020 7438 8922

Sue Anderson

020 7438 8924

Bernard Clarke

020 7438 8923