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.

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Northern Ireland house purchase lending up 11% in the second quarter

Published: 26 August 2015

New CML data on the characteristics of lending in Northern Ireland in the second quarter of 2015 outlining mortgage lending to first-time buyers, home movers and remortagors.

Lending in the second quarter 2015:

  • House purchase activity bounced back from the usual seasonal dip at the beginning of the year, but saw a decline compared to the second quarter in 2014.
  • First-time buyers and home movers saw similar trends with both increasing quarter-on-quarter but falling compared to the same period in 2014.
  • Remortgage activity increased compared to the first quarter and on the same quarter last year.   

Paul Smee, director general of the CML, commented:

Remortgage lending has shown growth for the third quarter in a row, a marked difference to its rather subdued levels over the past few years, and is now at it's highest since mid-2011 in Northern Ireland. With an interest rate rise becoming more likely, it appears people are looking to secure competitively-priced mortgage deals.

House purchase lending has increased compared to the first quarter which is unsurprising given the traditional lull in lending during the winter months. There was a decline year-on-year, but this is still the second best performing second quarter in Northern Ireland since 2007 and we have forecast activity to continue to pick up going forward. 

Chart 1: Loans for house purchase and remortgage by value in Northern Ireland

 Northern Ireland lending trends Q2 2015 - Chart 1 v2

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 Northern Ireland

 

Northern Ireland trends press release Q2 2015 - Chart two

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 Value of house purchase loans, £m Number of remortgage loans Value of remortgage loans, £m
Second quarter 2015 3,000 300 1,600 160
Change compared to first quarter 2015 11.1% 15.4% 6.7% 6.7%
Change compared to second quarter 2014 -9.1% -6.3% 23.1% 33.3%

Source: CML Regulated Mortgage Survey (April 2005 onwards)


Lending for house purchase and remortgage

House purchase lending in Northern Ireland saw a quarter-on-quarter rise, in both number of loans and amount borrowed. In comparison to the second quarter of 2014, however, there was a dip in activity but this still the second highest lending level in a second quarter since 2007.

First-time buyers continue to drive the market accounting for 57% of house purchase activity.   

Remortgage lending went up a third year-on-year by the amount borrowed and increases in number of loans mean that quarterly remortgage activity is the highest since 2011 in Northern Ireland.

Table 2: Second quarter first-time buyer 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

Second quarter 2015

1,700

150

81,275

30,000

85.0%

2.79

9.3%

16.2%

First quarter 2015

6.3%

 15.4%

78,300

29,352

84.2%

2.70

9.5%

16.0%

Second quarter 2014

-15.0%

 -11.8%

80,000

27,000

85.0%

2.90

11.2%

17.7%

Source: CML Regulated Mortgage Survey (April 2005 onwards)


Lending to first-time buyers

First-time buyers in Northern Ireland typically borrowed 2.79 times their gross income, up from 2.70 the previous quarter but less than the UK average of 3.38.

The typical loan size for first-time buyers was £81,275 in the second quarter, up from £78,300 in the first quarter. The typical gross income of a first-time buyer household was £30,000, up compared to £29,352 in the first quarter.

The low level of interest rates saw first-time buyers' payment burden remaining relatively low in the second quarter at 16.2% of gross income to cover capital and interest payments, lower than the first quarter's 17.0% and the 18.4% UK average.

Table 3: Second 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

Second quarter 2015

1,300 

150 

104,295

46,076

75.0%

2.32

6.4%

15.1%

First quarter 2015

 18.2%

 15.4%

104,294

45,091

75.5%

2.29

6.9%

15.0%

Second quarter 2014

 0.0%

 -6.3%

104,000

41,247

75.0%

2.50

7.9%

15.9%

Source: CML Regulated Mortgage Survey (April 2005 onwards)


Lending to home movers

Home movers in Northern Ireland typically borrowed 2.32 times their gross income, up from 2.29 the previous quarter but less than the same quarter last year and the UK average of 3.08.

The typical loan size for home movers was £104,295 in the second quarter, unchanged from the previous quarter, but substantially lower than the £160,994 UK average. The typical gross income of a home movers' household was £46,076, up compared to £45,091 in the first quarter.

Home movers' payment burden in the second quarter saw them spend 15.1% of their gross household income to cover capital and interest payments, a slight change from 15% in the first quarter, but substantially lower than the 18% UK average.

Chart 3: Number of home-owner remortgage loans in Northern Ireland

 Northern Ireland lending trend press release Q2 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 third quarter of 2015 will be released on Wednesday 25 November 2015.

Contact us

Gareth Hill

020 7438 8922

Bernard Clarke

020 7438 8923