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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  4. Northern Ireland house purchase lending up 13% in second quarter

Northern Ireland house purchase lending up 13% in second quarter

Published: 24 August 2016

In the second quarter:

  • Home buyers borrowed £350m for house purchase, up 3% quarter-on-quarter and 13% year-on-year. They took out 3,300 loans, up 6% compared to both the previous quarter and the second quarter 2015.
  • First-time buyers borrowed £200m, up 25% on the first quarter 2016 and up 33% on the second quarter last year. This totalled 2,000 loans, up 18% quarter-on-quarter and 11% year-on-year. 
  • Home movers borrowed £150m, down 17% quarter-on-quarter and 6% compared to a year ago. This totalled 1,300 loans, down 7% both quarter-on-quarter and compared to the same quarter in 2015.
  • Remortgage activity totalled £210m, up 24% on both the first quarter of the year and the same quarter last year. This came to 2,000 loans, up 25% quarter-on-quarter and 18% compared to a year ago.

Derek Wilson, CML Northern Ireland chair, commented:

This is the best performing second quarter of a year for house purchase lending in Northern Ireland since 2007, with first-time buyers really driving that rise in activity.  The fact that remortgage activity continued to rise over the past twelve months is also encouraging, given that it was largely static a couple of years ago.

The EU referendum occurred near the very end of the second quarter so it is unlikely these figures reflect the effect this may have on the mortgage market. It will take time before we see any possible effects from the Brexit vote, but it is clear that the market is firmly open for business in Northern Ireland. 

Affordability in Northern Ireland remains positive

First-time buyers affordability metrics in Northern Ireland remained better in the second quarter than for the UK overall. First-time buyers typically borrowed £91,425 (£132,800 in the UK overall), up from £90,000, and the average household income was £31,500 (£40,000 in the UK overall), up from £31,400. The typical income multiple in Northern Ireland was 2.90 (compared to 2.86 the previous quarter), also compared favourably to the UK average of 3.51.

Affordability metrics for home movers also compare favourably. The typical amount borrowed this quarter was £110,000 (£167,400 in the UK overall), down from £114,500 the previous quarter, and the average household income of a home mover was £44,100 (£53,600 in the UK overall), down from £47,100. This meant the typical home mover income multiple in Northern Ireland was 2.49, compared to 2.50 the previous quarter and the UK average of 3.26.

Chart 1: Number of loans to home-owners, 2007-2016

 20160824 Northern Ireland Q2 2016 press release chart one

Source: CML Regulated Mortgage Survey   

Download data

Table 1: Number of loans for house purchase and remortgage

 

House purchase

Remortgage

 

FTBs

Movers

Home owners

Q2 2015

1,800

1,400

1,700

Q1 2016

1,700

1,400

1,600

Q2 2016

2,000

1,300

2,000

Change compared to Q1 2016

+17.6%

-7.1%

+25.0%

Change compared to Q2 2015

+11.1%

-7.1%

+17.6%

Table 2: Value of loans for house purchase and remortgage

 

House purchase (£m)

Remortgage (£m)

  FTBs Movers Home owners

Q2 2015

150 160 170

Q1 2016

160 180 170

Q2 2016

200 150 210

Change compared to Q1 2016

+25.0% -16.7% +23.5%

Change compared to Q2 2015

+33.3% -6.3% +23.5%

 20160824 Northern Ireland Q2 2016 FTBs affordability infographic

20160824 Northern Ireland Q2 2016 home movers affordability infographic

Notes to editors

1. The Council of Mortgage Lenders' members are banks, building societies and other lenders who together undertake around 97% 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 2016 will be released on Wednesday 23 November 2016.

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