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  4. Home-owner house purchase lending up year-on-year 9% in fourth quarter

Home-owner house purchase lending up year-on-year 9% in fourth quarter

Published: 16 February 2016

New data from the Council of Mortgage Lenders released today reveals a mixed picture on lending in December to November. However, on an annual basis, the value of lending grew across all lending types.  

Lending in December:

  • First-time buyers borrowed £4.5bn for home-owner house purchase, up 7% on November and 18% on December last year. This totalled 29,300 loans, up 6% month-on-month and 11% year-on-year. 
  • Home movers borrowed £6.6bn, up 2% on November and 20% year-on-year. This totalled 33,400 loans, up 3% month-on-month and 12% compared to December 2014.  
  • Home-owner remortgage activity was down 16% by volume and 16% by value compared to November. Compared to December 2014, remortgage lending was up 14% by volume and up 24% by value. 
  • Gross buy-to-let saw month-on-month decreases, down 3% by volume and 3% by value, but the growth year-on-year continued.    

Lending in the fourth quarter 2015:

  • First-time buyers took out 87,100 loans totalling £13.3bn to purchase homes. This was up by volume 3% on the third quarter and 14% on the fourth quarter 2014 and by value it was up 3% quarter-on-quarter and 8% year-on-year. 
  • Home movers took out 101,900 loans, down 1% quarter-on-quarter but up 9% compared to the fourth quarter 2014. This totalled £20.3bn, down 3% on quarter three but up 18% year-on-year. 
  • Home-owner remortgage activity was up 4% by volume and 6% by value compared to the third quarter. Compared to the fourth quarter 2014, remortgage lending was up 21% by volume and up 35% by value. 
  • Gross buy-to-let saw a slight quarter-to-quarter decrease, down 1% by volume and 1% by value, but year-on-year growth continues.   

Lending in 2015:

  • First-time buyers borrowed £46.7bn for home-owner house purchase in 2015, which was up 4% on 2014. This totalled 311,700 loans, unchanged from the previous year. First-time buyer lending was at its highest since 2007.
  • Home movers took out 365,800 loans, down 0.2% on 2014, but the amount borrowed totalled £72.1bn was up 7% on 2014. Lending was at its annual highest since 2007.  
  • Home-owner remortgage activity was up 11% by volume and 20% by value compared to 2014. The value of remortgage lending was at its highest since 2008.
  • Gross buy-to-let also saw year-on-year increases, up 28% by volume and 39% by value. Buy-to-let lending was at its highest since 2007. 

Breakdown of total value of mortgage loans per year in the UK

   Home-owner house purchase (in £millions) Buy-to-let gross lending (in £millions) 
  First-time buyers Home movers Remortgage BtL house purchase BtL remortgage
2015 46,700 72,100 55,000 15,600 21,900
2014 45,000 67,700 45,900  12,400 14,500
2013 36,100 58,100 45,100  9,300 10,700

2012

27,500 53,900 41,400  7,400 7,600

2011

23,800 51,700 46,700  6,200 6,400

2010

24,100 54,700 39,600  4,650  3,960

2009

22,000 47,300 51,800  4,530 3,390

2008

23,900 51,800 118,400  12,210 14,610

2007

47,200 107,500 129,200  23,100 20,640

Source: CML Regulated Mortgage Survey (April 2005 onwards)

Paul Smee, director general of the CML, commented:

Improving economic conditions, boosted by government schemes like Help to Buy, saw the highest quarterly number of loans  to purchase a home for eight years. The market has seen a gradual upward trajectory over the past few years, rather than rapid growth, and we'd expect this trend to continue with gross lending steadily increasing over the next two years. 

 

 Chart 1: Loans to home-owners and for buy-to-let by value - December 2015

 20160216 MLT Dec 2015 chart one

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

Download data

Lending for house purchase and remortgage

Below is a more detailed breakdown of charts and tables to add further context to the headline data results.

Chart 2: Number of loans for house purchase and proportion of FTBs and home-movers by month

 20160216 MLT Dec 2015 chart two

Source: CML Regulated Mortgage Survey (April 2005 onwards)

Download the data

December lending for home-owner house purchase and remortgage

  No. of house purchase loans % change by volume Value of house purchase loans, £m % change by value No. of remortgage loans  % change by volume Value of remortgage loans, £m % change by value
Dec-15 62,700   11,100   25,500   4,200  
Nov-15 60,200 +4.2% 10,700 +3.7% 30,300 -15.8% 5,000 -16.0%
Dec -14 56,100 +11.8% 9,400 +18.1% 22,400 +13.8% 3,400 +23.5%

Source: CML Regulated Mortgage Survey (April 2005 onwards)

Fourth quarter lending for home-owner house purchase and remortgage

  No. of house purchase loans % change by volume Value of house purchase loans, £m % change by value No. of remortgage loans  % change by volume Value of remortgage loans, £m % change by value
Q4-15 189,100   33,700   89,000   15,000  
Q3-15 187,500 +0.9% 33,800 -0.3% 85,900 +3.6% 14,200 +5.6%
Q4 -14 174,300 +8.5% 29,000 +16.2% 73,300 +21.4% 11,100 +35.1%

Source: CML Regulated Mortgage Survey (April 2005 onwards) 

December first-time buyer lending and affordability measures

 

No. of loans

% change by volume

Value of loans £m

% change by value

Loan size (£)

Income (£)

Loan-to-value

Loan-to-income

Interest payment as % of income

Capital & interest payment as % of income

Dec-15

29,300

 

4,500

 

130,999

39,464

80.4%

3.50

9.6%

18.2%

Nov-15

27,700

+5.8%

4,200

+7.1%

128,250

39,257

83.7%

3.46

9.7%

18.3%

Dec-14

26,300

+11.4%

3,800

+18.4%

125,375

38,618

80.5%

3.39

11.0%

19.0%

Source: CML Regulated Mortgage Survey (April 2005 onwards)

Fourth quarter first-time buyers lending and affordability measures

 

No. of loans

% change by volume

Value of loans £m

% change by value

Loan size (£)

Income (£)

Loan-to-value

Loan-to-income

Interest payment as % of income

Capital & interest payment as % of income

Q4-15

87,100

  13,300  

129,495

39,160

82.9%

3.48

9.7%

18.3%

Q3-15

84,200

+3.4%

12,900

+3.1%

128,245

39,409

83.7%

3.44

10.0%

18.4%

Q4-14

80,500

+8.2%

11,700

+13.7%

124,450

38,324

82.7%

3.38

11.5%

19.2%

Source: CML Regulated Mortgage Survey (April 2005 onwards)

December home mover lending and affordability measures

 

No. of loans

% change by volume

Value of loans £m

% change by value

Loan size (£)

Income (£)

Loan-to-value

Loan-to-income

Interest payment as % of income

Capital & interest payment as % of income

Dec-15

33,400

  6,600  

166,500

54,179

73.2%

3.21

7.7%

18.1%

Nov-15

32,500

+2.8%

6,500

+1.5%

165,994

54,537

73.0%

3.18

7.7%

18.2%

Dec-14

29,800

+12.1%

5,500

+20.0%

155,800

53,500

71.9%

3.04

8.6%

18.3%

Source: CML Regulated Mortgage Survey (April 2005 onwards)

Fourth quarter home mover lending and affordability measures

 

No. of loans

% change by volume

Value of loans £m

% change by value

Loan size (£)

Income (£)

Loan-to-value

Loan-to-income

Interest payment as % of income

Capital & interest payment as % of income

Q4-15

101,900

  20,300  

165,999

54,449

72.9%

3.19

7.6%

18.1%

Q3-15

103,400

-1.5%

20,900

-2.9%

167,563

55,391

72.2%

3.14

7.5%

18.1%

Q4-14

93,800

+8.6%

17,200

+18.0%

153,500

53,174

71.4%

3.03

8.8%

18.4%

Source: CML Regulated Mortgage Survey (April 2005 onwards)

 Chart 3: Number of home-owner remortgages by month

 20160216 MLT Dec 2015 chart three

Source: CML Regulated Mortgage Survey (April 2005 onwards)

Download data  

December buy-to-let lending 

 

Gross lending buy-to-let

Buy-to-let house purchase

Buy-to-let remortgage

 

No. of loans

 % change

Value   of loans (£m)

% change

No. of loans

% change

Value of loans (£m)

% change

No. of loans

% change

Value of loans (£m)

% change

Dec-15

22,500

  3,400

 

10,300

 

1,400

 

11,900

 

1,900

 

Nov-15

23,300

-3.4%  3,500

-2.9%

10,000

+3.0%

1,300

+7.7%

13,100

-9.2%

2,100

-9.5% 

Dec-14

17,300

+30.1% 2,500 

+36.0%

8,600

+19.8%

1,100

+27.3%

8,600

+38.4%

1,400

+35.7%

Source: CML Economics

Fourth quarter buy-to-let lending 

 

Gross lending buy-to-let

Buy-to-let house purchase

Buy-to-let remortgage

 

No. of loans

 % change

Value   of loans (£m)

% change

No. of loans

% change

Value of loans (£m)

% change

No. of loans

% change

Value of loans (£m)

% change

Q4-15

70,500

  10,700

 

31,600

 

4,300

 

38,200

 

6,200

 

Q3-15

71,400

-1.3%  10,800

-0.9%

33,500

-5.7%

4,500

-4.4%

37,200

+2.7%

6,200

0.0% 

Q4-14

54,000

+30.6% 7,600

+40.8%

26,800

+17.9%

3,300

+30.3%

26,900

+42.0%

4,300

+44.2%

Source: CML Economics

Chart 4: Number of buy-to-let loans for house purchase and remortgage by month 

 20160216 MLT Dec 15 Chart four v2

Source: CML Economics

Download 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 for all home-owner mortgage data.

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. The January 2016 data will be released on Thursday 10 March 2015.

 

 

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Gareth Hill

020 7438 8922

Sue Anderson

020 7438 8923

Bernard Clarke

020 7438 8924