Menu
12/10/2009
Remortgaging Continues To Decline
The mortgage market is on two speed settings, as house purchase lending continues to recover but remortgaging continues to decline, according to the latest data released by the Council of Mortgage Lenders (CML).
The number of house purchase loans in August (53,000) is down 5% from July but 29% higher than August a year ago. And whilst this is still significantly lower than the August average in the seven years before the credit crisis of 100,000 loans, it is more than twice the level of activity at the start of the year.
There were 19,200 loans to first-time buyers and 33,400 loans to home movers.
House purchase activity, worth £7.2 billion in August, accounted for its largest share of total mortgage activity since 2002.
At £12.3 billion, gross mortgage lending declined 36% from August 2008.
Remortgaging activity continued to fall away due to the extremely low interest rate environment and restrictive lending criteria for the most attractive deals. There were 32,000 remortgage loans advanced in August, a 22% decrease on July, and a 57% decrease on August last year.
First time buyers typically had a 25% deposit and borrowed 3.03 times their income. Home movers typically borrowed 66% of the property’s value and 2.74 times their income.
CML Economist Paul Samter said: "House purchase activity has revived from its moribund state at the beginning of the year. It will be a drawn out recovery process with seasonal ups and downs, but house purchase activity is now on a firmer footing.
"But remortgaging demand has fallen away in the low interest rate environment and this is dragging down gross lending levels overall."
(CD/GK)
The number of house purchase loans in August (53,000) is down 5% from July but 29% higher than August a year ago. And whilst this is still significantly lower than the August average in the seven years before the credit crisis of 100,000 loans, it is more than twice the level of activity at the start of the year.
There were 19,200 loans to first-time buyers and 33,400 loans to home movers.
House purchase activity, worth £7.2 billion in August, accounted for its largest share of total mortgage activity since 2002.
At £12.3 billion, gross mortgage lending declined 36% from August 2008.
Remortgaging activity continued to fall away due to the extremely low interest rate environment and restrictive lending criteria for the most attractive deals. There were 32,000 remortgage loans advanced in August, a 22% decrease on July, and a 57% decrease on August last year.
First time buyers typically had a 25% deposit and borrowed 3.03 times their income. Home movers typically borrowed 66% of the property’s value and 2.74 times their income.
CML Economist Paul Samter said: "House purchase activity has revived from its moribund state at the beginning of the year. It will be a drawn out recovery process with seasonal ups and downs, but house purchase activity is now on a firmer footing.
"But remortgaging demand has fallen away in the low interest rate environment and this is dragging down gross lending levels overall."
(CD/GK)
Related UK National News Stories
Click here for the latest headlines.
11 October 2013
House Purchase Lending Increases
Total home-owner house purchase lending continues to grow, up 7% on July and 15% on August last year, according to the Council of Mortgage Lenders (CML). First-time buyers took out 27,100 loans in August, an increase of 7% on July and of 33% compared to August 2012.
House Purchase Lending Increases
Total home-owner house purchase lending continues to grow, up 7% on July and 15% on August last year, according to the Council of Mortgage Lenders (CML). First-time buyers took out 27,100 loans in August, an increase of 7% on July and of 33% compared to August 2012.
20 June 2011
Mortgage Lending Boosted
Gross mortgage lending totalled an estimated £11.3 billion in May, according to new data from the Council of Mortgage Lenders (CML). This represented a 12% increase from the £10.1 billion lent in April and was 1% higher than in May 2010. Gross mortgage lending includes lending for both house purchase and remortgage.
Mortgage Lending Boosted
Gross mortgage lending totalled an estimated £11.3 billion in May, according to new data from the Council of Mortgage Lenders (CML). This represented a 12% increase from the £10.1 billion lent in April and was 1% higher than in May 2010. Gross mortgage lending includes lending for both house purchase and remortgage.
02 June 2005
UK house price rise continues to level off
According to the latest survey on house prices, growth in the sector has slowed to its lowest level in almost a decade. The report from the Nationwide Building Society has revealed that house prices have risen by just 5.5% in the year ending May, the lowest year-on-year increase since August 1996.
UK house price rise continues to level off
According to the latest survey on house prices, growth in the sector has slowed to its lowest level in almost a decade. The report from the Nationwide Building Society has revealed that house prices have risen by just 5.5% in the year ending May, the lowest year-on-year increase since August 1996.
20 October 2004
Mortgage lending study points to property market slowdown
Mortgage lending has dipped again for the second consecutive month, indicating that the housing market is cooling off. According to the Council of Mortgage Lenders, there was a 4% drop in gross lending between August and September. Last month saw gross lending hit £25.
Mortgage lending study points to property market slowdown
Mortgage lending has dipped again for the second consecutive month, indicating that the housing market is cooling off. According to the Council of Mortgage Lenders, there was a 4% drop in gross lending between August and September. Last month saw gross lending hit £25.
12 April 2005
UK house prices fall, report shows
UK house prices fell by 0.5% between January and February, figures from the Office of the Deputy Prime Minister (ODPM) have shown. The drop in prices, which saw the average house price in the UK in February fall to £179,491 from £180,465 in January, is smaller than the 1% fall reported in the same period last year.
UK house prices fall, report shows
UK house prices fell by 0.5% between January and February, figures from the Office of the Deputy Prime Minister (ODPM) have shown. The drop in prices, which saw the average house price in the UK in February fall to £179,491 from £180,465 in January, is smaller than the 1% fall reported in the same period last year.
-
Northern Ireland WeatherToday:A showery start with outbreaks most frequent north of Lough Neagh and through the morning, before dwindling during the afternoon as the northwest breezes ease and brighter spells of weak sunshine prosper. Maximum temperature 8 °C.Tonight:A dry night, save for a few light showers around the coasts, with prolonged clear spells and light winds bringing a frosty dawn for many in central and southern parts. Minimum temperature -3 °C.
