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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Movers and remortgaging boosted activity in Wales

Published: 23 November 2017

In the third quarter of 2017 in Wales:

  • Home buyers borrowed £1.17 billion, up nine per cent quarter-on-quarter and 16 per cent year-on-year. They took out 8,700 loans, up seven per cent compared to the previous quarter and 13 per cent on the third quarter of 2016.
  • First-time buyers borrowed £510 million, up four per cent on the second quarter and 13 per cent on the third quarter last year. This totalled 4,400 loans, up five per cent quarter-on-quarter and 13 per cent year-on-year.
  • Home movers borrowed £660 million, up 14 per cent quarter-on-quarter and 18 per cent compared to a year ago. This totalled 4,300 loans, up 10 per cent both quarter-on-quarter and year-on-year.
  • Remortgaging activity totalled £560 million, up 19 per cent both quarter-on-quarter and year-on-year. This came to 4,700 loans, up 15 per cent on the second quarter of 2017 and up 12 per cent compared to a year ago.

Commenting on the data, Julie-Ann Haines, the chair of UK’s Finance’s Wales Mortgage Committee said:

“Lending for house purchase is growing strongly, and is now at its highest level for a decade.  Help to Buy Wales has made a positive contribution to the housing market, and we look forward to the Welsh government announcing its plans for the scheme in future.  In the last quarter, remortgaging also increased significantly, as borrowers took the opportunity to lock into historically low borrowing rates ahead of the widely anticipated increase in base rate earlier this month.”

Affordability in Wales

Affordability for first-time buyers in Wales remained better than for the UK overall.  They typically borrowed £109,250 (£139,500 in the UK overall), the same as in the preceding quarter.  The average household income was £33,904 (£41,009 in the UK overall), down from £34,096.  The typical income multiple in Wales of 3.32 (compared to 3.31 in the preceding quarter) also compared favourably to the UK average of 3.61.

Home movers borrowed an average of £137,565 in this quarter (£180,995 in the UK overall), up from £135,000 in the previous quarter.  The average household income of a home mover was £47,327 (£55,865 in the UK overall), up from £46,629.  This meant that the typical home mover income multiple in Wales was 3.02, compared to 3.01 in the previous quarter and the UK average of 3.39.

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

Source: UK Finance regulated mortgage survey

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

  House purchase Remortgage
FTBs Movers  
Q3 2016

3,900

3,900

4,200

Q2 2017

4,200

3,900

4,100

Q3 2017

4,400

4,300

4,700

Change compared to Q2 2017

4.8%

10.3%

14.6%

Change compared to Q3 2016

12.8%

10.3%

11.9%

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

  House purchase (£m) Remortgage
FTBs Movers  
Q3 2016

450

560

470

Q2 2017

490

580

470

Q3 2017

510

660

560

Change compared to Q2 2017

4.1%

13.8%

19.1%

Change compared to Q3 2016

13.3%

17.9%

19.1%

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.