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House purchase lending up 18% year-on-year in November

Published: 14 January 2016

Lending in November:

  • Home-owner house purchase lending totalled £10.7bn in November, down 9% on October but up 18% on November 2014.
  • First-time buyers borrowed £4.2bn for home-owner house purchase, down 9% on October but up 14% on November last year. This totalled 27,900 loans, down 8% month-on-month but up 10% year-on-year. 
  • Home movers took out 32,300 loans, down 10% month-on-month and up 9% compared to November 2014. In total, this was £6.5bn borrowed, down 10% on October but up 20% year-on-year. 
  • Home-owner remortgage activity was down 9% by volume and 14% by value compared to October. Compared to November 2014, remortgage lending was up 24% by volume and up 36% by value. 
  • Gross buy-to-let saw month-on-month decreases, down 6% by volume and 8% by value, but the substantial growth year-on-year continued.    

Paul Smee, director general of the CML, commented:

As expected, mortgage lending activity eased back as the normal dip in the winter months began. There was still growth across all lending types in November compared to the year earlier suggesting continued improvement. Our forecasts anticipate that gross lending will continue a slow but steady upward trajectory over the next two years. 

 Chart 1: Loans to home-owners and for buy-to-let by value

2016.01.15 November 2015 MLT release - Chart 1 

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

 2016.01.15 November 2015 MLT release - Chart 2

Source: CML Regulated Mortgage Survey (April 2005 onwards)

Download the data

Lending for house purchase and remortgage   

Table 1: November lending for home-owner house purchase and remortgage

  No. of house purchase loans % change by volume Value of house purchase loans, £m % change by value No. of remortgage loans  % change by volume Value of remortgage loans, £m % change by value
Nov-15 60,100   10,700   29,300   4,900  
Oct-15 66,200 -9.2% 11,800 -9.3% 32,800 -9.1% 5,700 -14.0%
Nov -14 55,000 +9.3% 9,100 +17.6% 24,000 +24.2% 3,600 +36.1%

Source: CML Regulated Mortgage Survey (April 2005 onwards)

House purchase lending in the UK in November saw a decrease month-on-month by volume and by value of mortgages advanced, but compared to November 2014 volumes and amount borrowed overall increased.    

As previously reported, UK gross lending overall in November totalled £20.5bn, down 6% on October but up year-on-year by 27% compared to November 2014. This was the highest lending level in the month of November since 2007. 

Table 2: November first-time buyer lending and affordability measures

 

No. of loans

% change by volume

Value of loans £m

% change by value

Loan size (£)

Income (£)

Loan-to-value

Loan-to-income

Interest payment as % of income

Capital & interest payment as % of income

Nov-15

27,900

 

4,200

 

128,000

39,163

83.5%

3.46

9.7%

18.3%

Oct-15

30,300

-7.9%

4,600

-8.7%

128,008

38,544

83.7%

3.48

9.8%

18.4%

Nov-14

25,300

+10.3%

3,700

+13.5%

123,750

38,113

83.0%

3.37

11.6%

19.3%

Source: CML Regulated Mortgage Survey (April 2005 onwards)

First-time buyer lending declined by volume and by value compared to October, but saw a year-on-year increase in loan numbers and amount borrowed. Competitive mortgage rates mean first-time buyers continue to pay low levels of their monthly household income to service the capital and interest rate payments of their mortgage at 18.3% in November, joint lowest average percentage level since we began tracking this in 2005 alongside June and September 2015. 

Table 3: November home mover lending and affordability measures

 

No. of loans

% change by volume

Value of loans £m

% change by value

Loan size (£)

Income (£)

Loan-to-value

Loan-to-income

Interest payment as % of income

Capital & interest payment as % of income

Nov-15

32,300

  6,500  

165,240

54,484

72.7%

3.17

7.7%

18.2%

Oct-15

35,900

-10.0%

7,200

-9.7%

165,295

54,146

72.3%

3.17

7.6%

18.2%

Nov-14

29,700

+8.8%

5,400

+20.4%

152,163

52,893

71.4%

3.03

8.8%

18.4%

Source: CML Regulated Mortgage Survey (April 2005 onwards)

Home movers borrowed £6.5bn in November, this was down compared to October but was the highest November-level since 2007. Home movers spent 18.2% of their monthly gross household income to pay capital and interest repayments, unchanged on October but a decrease compared to November 2014.

 Chart 3: Number of home-owner remortgages

 2016.01.15 November 2015 MLT release - Chart 3

Source: CML Regulated Mortgage Survey (April 2005 onwards)

Download the data

Remortgage activity saw a decrease by volume and by value in November compared to October, but increased year-on-year to have the highest volume of remortgage loans in the month of November since 2011 and the most borrowed in the month of November since 2008. 

Lending for buy-to-let

Gross buy-to-let lending decreased in November compared to October but was substantially up on last year. Buy-to-let remortgage continues to be the driver of activity remaining consistent with October and considerably up on the year before.  

Table 4: November buy-to-let lending 

 

Gross lending buy-to-let

Buy-to-let house purchase

Buy-to-let remortgage

 

No. of loans

 % change

Value   of loans (£m)

% change

No. of loans

% change

Value   of loans (£m)

% change

No. of loans

% change

Value   of loans (£m)

% change

Nov-15

23,300

  3,500

 

10,000

 

1,300

 

13,100

 

2,100

 

Oct-15

24,700

-5.7%  3,800

-7.9%

11,300

-11.5%

1,600

-18.8%

13,200

-0.8%

2,200

-4.5% 

Nov-14

17,300

+34.7% 2,400 

+45.8%

8,500

+17.6%

1,000

+30.0%

8,700

+50.6%

1,300

+61.5%

Source: CML Economics

Chart 4: Number of buy-to-let loans for house purchase and remortgage 

 2016.01.15 November 2015 MLT release - Chart 4

Source: CML Economics

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 for all home-owner mortgage data.

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. The December 2015 data will be released on Tuesday 16 February 2015.

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