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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First-time buyer lending up 14% in Wales in the fourth quarter

Published: 22 February 2017

In the fourth quarter:

  • Home buyers borrowed £1.1bn for house purchase, up 5% quarter-on-quarter and year-on-year. They took out 8,200 loans, up 5% compared to the previous quarter and 2% on the fourth quarter 2015.
  • First-time buyers borrowed £480m, up 7% on the third quarter and 14% on the fourth quarter last year. This totalled 4,200 loans, up 8% quarter-on-quarter and 14% year-on-year. 
  • Home movers borrowed £590m, up 4% quarter-on-quarter but down 3% compared to a year ago. This totalled 4,000 loans, up 3% quarter-on-quarter but down 7% compared to the same quarter in 2015.
  • Remortgage activity totalled £470m, down 2% on the third quarter but up 9% on the same quarter last year. This came to 4,200 loans, unchanged quarter-on-quarter but up 11% compared to a year ago.

In 2016:

  • Home buyers borrowed £3.9bn for house purchase, up 11% on 2015. They took out 29,700 loans, up 7% compared to the year before.
  • First-time buyers borrowed £1.7bn, up 17% on the previous year. This totalled 14,700 loans, up 11% on 2015. 
  • Home movers borrowed £2.2bn, totalling 14,900 loans, up 7% by value and 2% by volume on 2015.
  • Remortgage activity totalled £1.8bn, up 14% on 2015. This came to 16,200 loans, up 12% in 2015.

Julie Ann Haines, CML Cymru chair, commented:

More people took out mortgages to buy homes in Wales in 2016 than in any year since 2007. It is particularly notable that first-time buyers accounted for a greater share of lending than in any year since 1999, and affordability in Wales compares positively with the UK as a whole.

Affordability in Wales remains positive

First-time buyers affordability metrics in Wales remained better in the fourth quarter than for the UK overall. First-time buyers typically borrowed £107,400 (£135,000 in the UK overall), down from £108,300. The average household income was £33,400 (£40,200 in the UK overall), down from £34,100. The typical income multiple in Wales of 3.29 (unchanged from the previous quarter) also compared favourably to the UK average of 3.56.

Affordability metrics for home movers saw the typical amount borrowed this quarter was £134,600 (£172,500 in the UK overall), up on £131,200 the previous quarter. The average household income of a home mover was £47,000 (£54,900 in the UK overall), up from £46,100. This meant the typical home mover income multiple in Wales was 2.97, compared to 2.93 the previous quarter and the UK average of 3.29.

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

Chart showing number of loans for house purchase and remortgage in Wales

Source: CML Regulated Mortgage Survey

Download data

Table 1: Number of loans for house purchase and remortgage in the fourth quarter of 2016

 

House purchase

Remortgage

 

FTBs

Movers

Home owners

Q4 2015

3,700

4,300

3,800

Q3 2016

3,900

3,900

4,200

Q4 2016

4,200

4,000

4,200

Change compared to Q3 2016

+7.7%

+2.6%

0.0%

Change compared to Q4 2015

+13.5%

-7.0%

+10.5%

Table 2: Value of loans for house purchase and remortgage in the fourth quarter of 2016

 

House purchase (£m)

Remortgage (£m)

  FTBs Movers Home owners

Q4 2015

420 610 430

Q3 2016

450 570 480

Q4 2016

480 590 470

Change compared to Q3 2016

+6.7% +3.5% -2.1%

Change compared to Q4 2015

+14.3% -3.3% +9.3%

Table 3: Number of loans for house purchase and remortgage in 2016

 

House purchase

Remortgage

  FTBs Movers Home owners

2015

13,200 14,600 14,500

2016

14,700 14,900 16,200

Change year-on-year

+11.4% +2.1% +11.7%

Table 4: Value of loans for house purchase and remortgage in 2016

 

House purchase (£m)

Remortgage (£m)

  FTBs Movers Home owners

2015

1,400 2,000 1,600

2016

1,700 2,200 1,800

Change year-on-year

+21.4% +10.0% +12.5%

20170224 Wales Q4 2016 FTB Infographic

20170224 Wales Q4 2016 home movers Infographic v1

 

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 first quarter of 2017 will be released on Wednesday 24 May 2017.

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