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fourth quarter 2015: First-time buyers took out 87,100 loans to purchase homes. + house prices in UK



New data from the Council of Mortgage Lenders released today reveals a mixed picture on lending in December to November. However, on an annual basis, the value of lending grew across all lending types.  

Lending in December:

  • First-time buyers borrowed £4.5bn for home-owner house purchase, up 7% on November and 18% on December last year. This totalled 29,300 loans, up 6% month-on-month and 11% year-on-year. 
  • Home movers borrowed £6.6bn, up 2% on November and 20% year-on-year. This totalled 33,400 loans, up 3% month-on-month and 12% compared to December 2014.  
  • Home-owner remortgage activity was down 16% by volume and 16% by value compared to November. Compared to December 2014, remortgage lending was up 14% by volume and up 24% by value. 
  • Gross buy-to-let saw month-on-month decreases, down 3% by volume and 3% by value, but the growth year-on-year continued.    

Lending in the fourth quarter 2015:

  • First-time buyers took out 87,100 loans totalling £13.3bn to purchase homes. This was up by volume 3% on the third quarter and 14% on the fourth quarter 2014 and by value it was up 3% quarter-on-quarter and 8% year-on-year. 
  • Home movers took out 101,900 loans, down 1% quarter-on-quarter but up 9% compared to the fourth quarter 2014. This totalled £20.3bn, down 3% on quarter three but up 18% year-on-year. 
  • Home-owner remortgage activity was up 4% by volume and 6% by value compared to the third quarter. Compared to the fourth quarter 2014, remortgage lending was up 21% by volume and up 35% by value. 
  • Gross buy-to-let saw a slight quarter-to-quarter decrease, down 1% by volume and 1% by value, but year-on-year growth continues.   

Lending in 2015:

  • First-time buyers borrowed £46.7bn for home-owner house purchase in 2015, which was up 4% on 2014. This totalled 311,700 loans, unchanged from the previous year. First-time buyer lending was at its highest since 2007.
  • Home movers took out 365,800 loans, down 0.2% on 2014, but the amount borrowed totalled £72.1bn was up 7% on 2014. Lending was at its annual highest since 2007.  
  • Home-owner remortgage activity was up 11% by volume and 20% by value compared to 2014. The value of remortgage lending was at its highest since 2008.
  • Gross buy-to-let also saw year-on-year increases, up 28% by volume and 39% by value. Buy-to-let lending was at its highest since 2007. 

Breakdown of total value of mortgage loans per year in the UK

  Home-owner house purchase (in £millions)Buy-to-let gross lending (in £millions) 
 First-time buyersHome moversRemortgageBtL house purchaseBtL remortgage
201546,70072,10055,00015,60021,900
201445,00067,70045,900 12,40014,500
201336,10058,10045,100 9,30010,700
2012
27,50053,90041,400 7,4007,600
2011
23,80051,70046,700 6,2006,400
2010
24,10054,70039,600 4,650 3,960
2009
22,00047,30051,800 4,5303,390
2008
23,90051,800118,400 12,21014,610
2007
47,200107,500129,200 23,10020,640
Source: CML Regulated Mortgage Survey (April 2005 onwards)

Paul Smee, director general of the CML, commented:

Improving economic conditions, boosted by government schemes like Help to Buy, saw the highest quarterly number of loans  to purchase a home for eight years. The market has seen a gradual upward trajectory over the past few years, rather than rapid growth, and we'd expect this trend to continue with gross lending steadily increasing over the next two years. 

 Chart 1: Loans to home-owners and for buy-to-let by value - December 2015

 20160216 MLT Dec 2015 chart one
Source: CML Regulated Mortgage Survey (April 2005 onwards), CML Economics 

Lending for house purchase and remortgage

Below is a more detailed breakdown of charts and tables to add further context to the headline data results.

Chart 2: Number of loans for house purchase and proportion of FTBs and home-movers by month

 20160216 MLT Dec 2015 chart two
Source: CML Regulated Mortgage Survey (April 2005 onwards)

December lending for home-owner house purchase and remortgage

 No. of house purchase loans% change by volumeValue of house purchase loans, £m% change by valueNo. of remortgage loans % change by volumeValue of remortgage loans, £m% change by value
Dec-1562,700 11,100 25,500 4,200 
Nov-1560,200+4.2%10,700+3.7%30,300-15.8%5,000-16.0%
Dec -1456,100+11.8%9,400+18.1%22,400+13.8%3,400+23.5%
Source: CML Regulated Mortgage Survey (April 2005 onwards)

Fourth quarter lending for home-owner house purchase and remortgage

 No. of house purchase loans% change by volumeValue of house purchase loans, £m% change by valueNo. of remortgage loans % change by volumeValue of remortgage loans, £m% change by value
Q4-15189,100 33,700 89,000 15,000 
Q3-15187,500+0.9%33,800-0.3%85,900+3.6%14,200+5.6%
Q4 -14174,300+8.5%29,000+16.2%73,300+21.4%11,100+35.1%
Source: CML Regulated Mortgage Survey (April 2005 onwards) 

December 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
Dec-15
29,300
 
4,500
 
130,999
39,464
80.4%
3.50
9.6%
18.2%
Nov-15
27,700
+5.8%
4,200
+7.1%
128,250
39,257
83.7%
3.46
9.7%
18.3%
Dec-14
26,300
+11.4%
3,800
+18.4%
125,375
38,618
80.5%
3.39
11.0%
19.0%
Source: CML Regulated Mortgage Survey (April 2005 onwards)

Fourth quarter first-time buyers 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
Q4-15
87,100
 13,300 
129,495
39,160
82.9%
3.48
9.7%
18.3%
Q3-15
84,200
+3.4%
12,900
+3.1%
128,245
39,409
83.7%
3.44
10.0%
18.4%
Q4-14
80,500
+8.2%
11,700
+13.7%
124,450
38,324
82.7%
3.38
11.5%
19.2%
Source: CML Regulated Mortgage Survey (April 2005 onwards)

December 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
Dec-15
33,400
 6,600 
166,500
54,179
73.2%
3.21
7.7%
18.1%
Nov-15
32,500
+2.8%
6,500
+1.5%
165,994
54,537
73.0%
3.18
7.7%
18.2%
Dec-14
29,800
+12.1%
5,500
+20.0%
155,800
53,500
71.9%
3.04
8.6%
18.3%
Source: CML Regulated Mortgage Survey (April 2005 onwards)

Fourth quarter 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
Q4-15
101,900
 20,300 
165,999
54,449
72.9%
3.19
7.6%
18.1%
Q3-15
103,400
-1.5%
20,900
-2.9%
167,563
55,391
72.2%
3.14
7.5%
18.1%
Q4-14
93,800
+8.6%
17,200
+18.0%
153,500
53,174
71.4%
3.03
8.8%
18.4%
Source: CML Regulated Mortgage Survey (April 2005 onwards)

 Chart 3: Number of home-owner remortgages by month

 20160216 MLT Dec 2015 chart three
Source: CML Regulated Mortgage Survey (April 2005 onwards)

December 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
Dec-15
22,500
 3,400

10,300
 
1,400
 
11,900
 
1,900
 
Nov-15
23,300
-3.4% 3,500
-2.9%
10,000
+3.0%
1,300
+7.7%
13,100
-9.2%
2,100
-9.5% 
Dec-14
17,300
+30.1%2,500 
+36.0%
8,600
+19.8%
1,100
+27.3%
8,600
+38.4%
1,400
+35.7%
Source: CML Economics

Fourth quarter 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
Q4-15
70,500
 10,700

31,600
 
4,300
 
38,200
 
6,200
 
Q3-15
71,400
-1.3% 10,800
-0.9%
33,500
-5.7%
4,500
-4.4%
37,200
+2.7%
6,200
0.0% 
Q4-14
54,000
+30.6%7,600
+40.8%
26,800
+17.9%
3,300
+30.3%
26,900
+42.0%
4,300
+44.2%
Source: CML Economics

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

 20160216 MLT Dec 15 Chart four v2
Source: CML Economics

Downloads

  1. Restricted contentMLGL: Mortgage lending tables, Greater London (CML) (XLS 308KB)
  2. Restricted contentML2: First-time buyers, lending and affordability (XLS 104KB)
  3. Restricted contentML3: Home movers, lending and affordability (XLS 106KB)
  4. Restricted contentML4: All loans for house purchase, lending and affordability (XLS 96KB)
  5. Restricted contentML5: Fixed and variable rate lending, house purchases and remortgages (XLS 124KB)
  6. Restricted contentML6: Methods of repayment (XLS 290KB)
  7. Restricted contentML7: Distribution of property valuations (XLS 118KB)
  8. Restricted contentML1: Gross mortgage lending by type of advance (XLS 115KB)
  9. Restricted contentML8: Lending via intermediaries (XLS 43KB)
  10. Restricted contentMM17: Buy-to-let gross advances (XLS 1.71MB)




Main findings

  • UK house prices increased by 6.7% in the year to December 2015, down from 7.7% in the year to November 2015.
  • House price annual inflation was 7.3% in England, 1.0% in Wales, -0.2% in Scotland and 1.5% in Northern Ireland.
  • Annual house price increases in England were driven by an annual increase in the East (9.7%), London (9.4%) and the South East (8.8%).
  • Excluding London and the South East, UK house prices increased by 4.6% in the 12 months to December 2015.
  • On a seasonally adjusted basis, average house prices decreased by 0.2% between November 2015 and December 2015.
  • In December 2015, prices paid by first-time buyers were 6.4% higher on average than in December 2014.
  • For owner-occupiers (existing owners), prices increased by 6.9% for the same period.
Get all the tables for this publication in the data section of this publication .

Download PDF

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