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.

  1. Home
  2. News
  3. Press releases
  4. House purchase activity in Wales up 29% in second quarter

House purchase activity in Wales up 29% in second quarter

Published: 26 August 2015

New CML data on the characteristics of lending in Wales 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 saw large quarter-on-quarter increases compared to the first quarter of the year, but a slight decline in volume of loans compared to the second quarter in 2014.
  • First-time buyers increased significantly from the first quarter, but decreased in amount borrowed and number of loans compared to the second quarter of 2014.
  • Home movers went up in volume and value quarter-on-quarter, and while number of loans remained unchanged year-on-year the amount borrowed by home movers increased. 
  • Remortgage activity increased compared to the first quarter and on the same quarter last year.   

Julie-Ann Haines, CML chair for Wales, commented:

House purchase activity appears to have woken up in Wales after traditionally slower levels in the winter months. The uptick in remortgage is, in particular, striking as levels had remained relatively identical over the previous four quarters. With the current low rates of interest unlikely to continue, it seems that borrowers are now taking advantage of competitive mortgage rates before a rise.

Chart 1: Loans to home-owners and remortgage by value in Wales

  Wales lending press release Q2 0215 - 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 Wales

 Wales lending trends press release Q2 2015 - Chart 2

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 6,600 810 3,500 370
Change compared to first quarter 2015 29.4% 28.6% 9.4% 8.8%
Change compared to second quarter 2014 -4.3% 1.3% 12.9% 15.6%

Source: CML Regulated Mortgage Survey (April 2005 onwards)


Lending for house purchase and remortgage

House purchase lending in Wales saw a quarter-on-quarter rise, in both number of loans and amount borrowed, by nearly a third compared to the first quarter of 2015. There was a slight dip in number of loans advanced when compared to the second quarter of 2014 but this is still the second highest lending volume level in a second quarter of a year since 2007. First-time buyers accounted for 47% of all house purchase activity with home movers making up the remaining 53%.  

Remortgage lending went up a year-on-year in amount borrowed and increases in number of loans mean quarterly remortgage activity is the highest in Wales since the fourth quarter of 2013.

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

3,100

330

102,207

32,526

85.0%

3.18

10.3%

17.7%

First quarter 2015

29.1%

 26.9%

101,150

32,320

85.0%

3.13

10.9%

18.0%

Second quarter 2014

-6.1%

 -5.7%

99,000

30,500

85.0%

3.23

11.4%

18.2%

Source: CML Regulated Mortgage Survey (April 2005 onwards)


Lending to first-time buyers

First-time buyers in Wales typically borrowed 3.18 times their gross income, up from 3.13 the previous quarter but less than the UK average of 3.38.

The typical loan size for first-time buyers was £102,207 in the second quarter, up from £101,150 in the first quarter. The typical gross income of a first-time buyer household was £32,526 also up compared to £32,320 in the first quarter.

First-time buyers' payment burden in the second quarter was 17.7% of gross income to cover capital and interest payments, down on the first quarter's 18.0%, and lower than 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

3,500

480 

126,000

46,314

75.0%

2.77

7.5%

17.0%

First quarter 2015

 29.6%

 26.3%

1.6%

3.3%

75.5%

2.75

7.9%

17.1%

Second quarter 2014

 0.0%

6.7%

6.8%

9.6%

75.0%

2.82

8.0%

17.2%

Source: CML Regulated Mortgage Survey (April 2005 onwards)


Lending to home movers

Home movers in Wales typically borrowed 2.77 times their gross income, up from 2.75 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 £126,000 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 £46,314, up compared to £44,853 in the first quarter.

Home movers' payment burden in the second quarter saw them spend 17.0% of their gross household income to cover capital and interest payments, a slight change from 17.1% in the first quarter, but lower than the 18% UK average.

Chart 3: Number of home-owner remortgage loans in Wales

 Wales lending trends 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