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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  4. House purchase lending up 20% in Wales year-on-year in the fourth quarter

House purchase lending up 20% in Wales year-on-year in the fourth quarter

Published: 24 February 2016

New data from the Council of Mortgage Lenders released today reveals lending in Wales for house purchase and remortgage increased in the fourth quarter 2015, both on the third quarter and compared to the same period in 2014.

Lending in the fourth quarter 2015:

  • Home-owner house purchase lending totalled 7,900 loans, up 7% on the previous quarter and 14% on the fourth quarter 2014. These loans were worth £1bn, up 9% quarter-on-quarter and 20% year-on-year.
  • First-time buyers took out 3,700 loans in Wales, worth £410m, up 3% by volume and by value on the third quarter. Compared to the same period the previous year, this was up 16% by volume and 21% by value.
  • There were 4,200 home-mover loans, up 11% on the previous quarter and 14% more than in the fourth quarter of 2014. The total value of these loans was £600m, up 11% quarter-on-quarter and 20% year-on-year.
  • Remortgage lending in Wales grew to £430m (3,800 loans), up 8% by value and 3% by volume quarter-on-quarter. Compared to the fourth quarter 2014, this was an increase of 19% by volume and 26% by value. 

Lending in 2015:

  • Home-owner house purchase lending totalled 27,300 loans worth £3.4bn, up 4% by volume and 10% by value compared to 2014.
  • First-time buyers took out 13,000 loans, worth £1.4bn, up 7% by volume and 10% by value year-on-year.
  • Home movers took out 14,400 annually, worth £2bn, up 3% by volume and 10% by value on 2014. 
  • Remortgage lending came to 14,300 loans, worth £1.6bn, , up 12% by volume and 16% by value on the previous year.  

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

The continued growth in all lending types meant that more people bought homes in Wales in 2015 than any other year since 2007, and it is welcome to see both first-time buyers and home movers driving this growth. With affordability being better in Wales than the UK overall, and demand-led government schemes like Help to Buy Cymru proving popular, we'd expect this upward trend to continue in 2016.

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

 20160224 Wales Q4 2015 chart one v2

Source: CML Regulated Mortgage Survey (April 2005 onwards), CML Economics

Download data

Chart 2: Number of loans for house purchase and proportion of FTBs and home-movers in Wales

 20160224 Wales Q4 2015 chart two

Source: CML Regulated Mortgage Survey (April 2005 onwards)

Download data

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

  Number of house purchase loans % change Value of house purchase loans, £m % change Number of remortgage loans % change Value of remortgage loans, £m % change
Q4 2015 7,900   1,010    3,800   430  
Q3 2015 7,400 +6.8% 930 +8.6% 3,700 +2.7% 400 +7.5%
Q4 2014 6,900 +14.5% 840 +20.2% 3,200 +18.8% 340 +26.5%

Source: CML Regulated Mortgage Survey (April 2005 onwards)

Table 2: Fourth quarter first-time buyer lending and affordability measures

 

Number of loans

% change

Value of loans £m

% change

Loan size (£)

Income (£)

Loan-to-value

Loan-to-income

Interest payment as % of income

Capital and interest payment as % of   income

Q4 2015

3,700

 

410

 

106,000

32,592

85.2%

3.30

10.1%

17.7%

Q3 2015

3,600

+2.8%

400

+2.5%

104,000

32,833

85.3%

3.25

10.3%

17.6%

Q4 2014

3,200

+15.6%

340

+20.6%

100,625

31,930

85.0%

3.19

11.3%

17.9%

Source: CML Regulated Mortgage Survey (April 2005 onwards)

Table 3: Fourth 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

Q4 2015

4,200

 

600 

 

129,075

46,810

75.1%

2.83

7.2%

16.9%

Q3 2015

3,800 

+10.5%

540

+11.1%

129,175

46,298

75.1%

2.86

7.3%

17.1%

Q4 2014

3,700

+13.5%

500

+20.0%

123,500

45,289

75.0%

2.77

8.1%

17.2%

Source: CML Regulated Mortgage Survey (April 2005 onwards)

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

 20160224 Wales Q4 2015 chart three

Source: CML Regulated Mortgage Survey (April 2005 onwards)

Download 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 first quarter of 2016 will be released on Wednesday 25 May 2016.

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