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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First-time buyers in Northern Ireland up 20% in the second quarter of 2017

Published: 23 August 2017

In the second quarter in Northern Ireland:

  • Home buyers borrowed £420m, up 17% on the first quarter of 2017 and 24% compared to the second quarter last year. There were 3,800 loans taken out for house purchase, up 15% quarter-on-quarter and 15% compared to a year ago.
  • First-time buyers borrowed £230m, up 15% on the first quarter and 21% on the second quarter last year. This totalled 2,400 loans, up 20% both quarter-on-quarter and year-on-year.
  • Home movers borrowed £190m, up 19% quarter-on-quarter and 27% compared to a year ago. This totalled 1,500 loans, up 25% quarter-on-quarter and 15% compared to the same quarter in 2016.
  • Remortgage activity totalled £210m, unchanged on the first quarter 2017 and on the same quarter last year. This came to 2,000 loans, down 5% quarter-on-quarter and unchanged compared to a year ago.

Derek Wilson, Chair, UK Finance Northern Ireland Mortgage Committee, commented:

House purchase lending in Northern Ireland reached its highest second quarter level since 2007. First-time buyers continue to drive that growth, out-borrowing home movers since 2010. Affordability conditions are better than in the UK overall, and are assisted by attractive rates being offered by lenders and a wide range of product choice available in the market.

Affordability in Northern Ireland remains positive

First-time buyer affordability in Northern Ireland was higher in the second quarter than for the UK overall. First-time buyers typically borrowed £96,900 (£137,700 in the UK overall), up from £95,000 the previous quarter. The average household income was £32,200 (£40,800 in the UK overall), up from £32,000. The typical income multiple in Northern Ireland of 2.94 (compared to 2.92 the previous quarter) also compared favourably to the UK average of 3.58.

Home movers borrowed an average this quarter of £118,100 (£178,200 in the UK overall), up from £115,000 the previous quarter. The average household income of home movers was £45,500 (£55,100 in the UK overall), down from £46,000. This meant the typical home mover income multiple in Northern Ireland was 2.57, compared to 2.59 the previous quarter and the UK average of 3.37.

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

20170823 Northern Ireland Q2 2017 MLT chart 1

Source: CML Regulated Mortgage Survey

Download data

Table 1: Number of loans for house purchase and remortgage in the second quarter 

 

House purchase

Remortgage

 

FTBs

Movers

Home owners

Q2 2016

2,000

1,300

2,000

Q1 2017

2,000

1,200

2,100

Q2 2017

2,400

1,500 2,000

Change compared to Q1 2017

+20.0%

+25.0% -4.8%

Change compared to Q2 2016

+20.0%

+15.4% 0.0%

Table 2: Value of loans for house purchase and remortgage in the second quarter

 

House purchase (£m)

Remortgage (£m)

  FTBs Movers Home owners

Q2 2016

190 150 210

Q1 2017

200 160 210

Q2 2017

230 190 210

Change compared to Q1 2017

+15.0% +18.8% 0.0%

Change compared to Q2 2016

+21.1% +26.7% 0.0%

Affordability infographics

20170823 Northern Ireland Q2 first-time buyer affordability infographic

20170823 Northern Ireland Q2 home movers affordability infographic

 

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.

2. Mortgage lending figures for Q3 will be released on Wednesday 22 November 2017.

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