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. London house purchase lending dips in fourth quarter of 2015

London house purchase lending dips in fourth quarter of 2015

Published: 24 February 2016

House purchase lending in London declined in 2015 in comparison with the previous year, but remortgaging increased, according to new data from the Council of Mortgage Lenders.

Lending in the fourth quarter 2015:

  • There were 21,800 home-owner house purchase loans - down 4% on the third quarter but up 5% compared to the fourth quarter 2014. These loans were worth £6.7bn - down 7% quarter-on-quarter but up 16% year-on-year.
  • First-time buyer took out 12,000 loans in London - down 2% on the previous quarter but up 1% on the fourth quarter in 2014. These loans totalled in value £3.2bn - down 4% on the third quarter but up 11% on the fourth quarter of 2014. 
  • Home movers in the Capital took out 9,800 loans, worth £3.6bn - down 7% by volume and 9% by value on the previous quarter. Compared to the fourth quarter 2014, this was up 11% by volume and 22% by value. 
  • Remortgage lending increased 5% by volume and 8% by value compared to quarter three totalling £3.8bn (13,100 loans). Compared to the fourth quarter 2014, this was an increase of 34% in number of loans and 53% in amount borrowed for remortgage in the period. 

Lending in 2015:

  • The number of loans for home-owner house purchase in London decreased year-on-year to 81,600 loans (£24.5bn) - down 5% by volume but up 1% by value on 2014.
  • First-time buyers took out 45,600, worth £11.6bn - down 6% by number of loans and 1% by amount borrowed compared to 2014.
  • Home movers took out 35,900 loans (£12.9bn) - down 3% by volume but up 4% by value year-on-year.
  • Remortgage lending totalled 48,600 loans, worth £13.7bn, which was up 14% by volume and 25% by value on 2014.  

Paul Smee, director general of the CML, commented:

House purchase lending in London fell in 2015 due mainly to a slow start: later months of the year saw activity pick up again. Persisting supply and affordability issues, alongside the introduction of the Help to Buy London scheme, means there will be some uncertainty around how the market will perform going into 2016. 

By contrast, remortgage activity, which has been consistently flat for the past few years, appears to be on an upward trend. Competitive mortgage rates appear to have sparked this activity and we have not seen quarterly volumes at this level since 2009. 

Chart 1: Loans for home-owner house purchase and for remortgage by value

 20160224 London Q4 2015 chart one

Source: CML Regulated Mortgage Survey (April 2005 onwards)

Download data

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

 20160224 London Q4 2015 chart two

Source: CML Regulated Mortgage Survey (April 2005 onwards)

Download data

Table 1: Fourth 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
Q4 2015 21,800   6,700   13,100   3,840  
Q3 2015 22,800 -4.4% 7,180 -6.7% 12,500 +4.8% 3,560 +7.9%
Q4 2014 20,700 +5.3% 5,770 +16.1% 9,800 +33.7% 2,510 +53.0%

Source: CML Regulated Mortgage Survey (April 2005 onwards)

Table 2: Fourth 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

Q4 2015

12,000

 

3,150

 

242,920

61,000

75.2%

3.94

9.0%

19.4%

Q3 2015

12,300

-2.4%

3,270

-3.7%

238,500

61,111

75.2%

3.85

9.1%

19.2%

Q4 2014

11,900

+0.8%

2,850

+10.5%

217,000

56,541

77.1%

3.85

11.6%

20.9%

Source: CML Regulated Mortgage Survey (April 2005 onwards)

Table 3: Fourth quarter home mover 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

Q4 2015

9,800

 

3,550

 

315,618

84,204

66.3%

3.86

8.0%

19.5%

Q3 2015

10,500

-6.7%

3,910

-9.2%

318,750

86,880

65.7%

3.79

7.7%

19.3%

Q4 2014

8,800

+11.4%

2,910

+22.0%

277,095

80,338

68.2%

3.64

10.0%

20.5%

Source: CML Regulated Mortgage Survey (April 2005 onwards)

Chart 3: Number of home-owner remortgages

 20160224 London Q4 2015 chart three

Source: CML Regulated Mortgage Survey (April 2005 onwards)

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

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 first quarter of 2016 will be released on Wednesday 25 May 2016.

Contact us

Gareth Hill

020 7438 8922

Sue Anderson

020 7438 8923

Bernard Clarke

020 7438 8924