Mortgage Trends Update UK Finance: Mortgage Trends Update December 218 of first-time reaches 12-year high in 218 Key data highlights: There were 37, new first-time buyer mortgages completed in 218, some 19 per cent more than in 217 This is the highest number of first-time buyer mortgages since 26, when this figure stood at 42,8 The 62 billion of new lending in the year was 49 per cent more than in 217 There were 3,9 new first-time buyer mortgages completed in December 218, some 16 per cent more than in the same month a year earlier The 52 billion of new lending in the month was 4 per cent more year-on-year There were new homemover mortgages completed in December 218, some 13 per cent fewer than in the same month a year earlier The 65 billion of new lending in the month was the same year-on-year In 218, there were 367,8 new homemover mortgages completed, some 19 per cent less than in 217 The 8 billion of new lending in the year was the same as in 217 There were 34, new homeowner remortgages completed in December 218, some 93 per cent more than in the same month a year earlier The 61 billion of remortgaging in the month was 13 per cent more year-on-year In 218, there were 476,9 new homeowner remortgages completed, some 18 per cent more than in 217 The 85 billion of new lending in the year was 13 per cent more than in 217 There were 5,1 new buy-to-let home purchase mortgages completed in December 218, some 56 per cent fewer than in the same month a year earlier By value this was 7 billion of lending in the month, 125 per cent down year-on-year In 218, there were 66,4 new buy-to-let home purchases completed, some 115 per cent less than in 217 The 9 billion of new lending in the year was 15 per cent less than in 217 There were 12,4 new buy-to-let remortgages completed in December 218, some 253 per cent more than in the same month a year earlier By value this was 2 billion of lending in the month, 25 per cent more year-on-year In 218, there were 169,1 new buy-to-let remortgages completed, some 112 per cent more than in 217 The 27 billion of new lending in the year was 116 per cent more than in 217 Commenting on the data, Jackie Bennett, Director of Mortgages at UK Finance said: The mortgage industry helped 37, people buy their first home in 218, the highest number in twelve years, as competitive deals and government schemes such as Help to Buy continue to boost the market Homeowner remortgaging also saw strong growth driven by customers locking into attractive rates, a trend we expect to continue in 219 as more fixed-rate mortgages come to an end Demand for new buy-to-let purchases continues to be dampened by recent tax and regulatory changes However, the number of buy-to-let remortgages reached a record high of almost 17, last year, suggesting many landlords remain committed to the market
Notes to Editor 1 For more information please call the UK Finance press office on 2 7416 675 or email press@ukfinanceorguk 2 3 UK Finance is the collective voice for the banking and finance industry Representing more than 25 firms across the industry we help drive forward positive change to enhance standards, support customers and promote innovation The data shown is grossed up from the sample of lenders reporting to reflect total market size, based on total market volumes of Mortgage Product volumes of Mortgage Product Sales Data published by the FCA, so our historical figures are subject to revision as and when the FCA makes revisions to the market totals The average figures shown are medians, as they tend to better represent the position of the typical borrower Affordability measures are based on median averages of calculations for individual transactions Capital & interest payment calculations only include mortgages taken out on a full capital and interest repayment basis and are calculated based on the reported repayment term, interest rate, loan amount and income for each transaction 4 Income metrics are presented on a gross household basis, as the sum of all income sources for all borrowers included in the affordability assessment Next update: 14 March 219
Percentage Multiple Percentage House Purchase of new loans of new residential purchase, secured by a first charge on the property 3,9 16% Homemovers -13% Value of new lending Value of new residential purchase, secured by a first charge on the property 8, 6, 4, 2, 52bn 4% Homemovers 65bn % Loan to value Ratio of loan amount advanced to property value Year-on-year comparison is the absolute change in the percentage 9 85 8 75 7 65 822% 8% Homemovers 736% 13% 2, 175, 145,72 25% Loan size Median value of loans advanced 15, 125, 1, Homemovers 184,996 22% Loan to income multiple Ratio of loan amount advanced to gross income of all borrowers Year-on-year comparison is the absolute change in the multiple 38 37 36 35 34 33 32 366 1 Homemovers 345 2 Repayments as % of income Proportion of gross income used to service capital and interest repayments Year-onyear comparison is the absolute change in the percentage 18 175 17 165 16 155 15 172% % Homemovers 176% 1% Borrower income Median gross income of all borrowers used in mortgage assessment 6, 55, 5, 45, 35, 42,5 32% Homemovers 56,276 21%
Remortgaging of remortgages of residential loans remortgaged, secured by a first charge on the property 55, 5, 45, 35, 25, Homeowners 34, 93% Value of remortgages Value of residential loans remortgaged, secured by a first charge on the property 8, 6, 4, Homeowners 61bn 13% 2, Buy-to-let of new loans of new buy-to-let purchase or remortgaging, secured by a first charge on the property 15, 5, House purchase 5,1-56% Remortgage 12,4 253% Value of new lending Value of new buy-to-let purchase or remortgaging, secured by a first charge on the property 3, 2, 1, House purchase 7bn -125% Remortgage 2bn 25% Next update: 13 March 219
Homeowner House Purchase Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18 Source table of new loans 3,4 24, 24,8 31, 26,4 32, 34,6 31,7 35,7 3,1 32,9 35,9 3,9 ML2 Homemovers 3,4 24,6 24,5 28,3 24,9 31,1 33,3 33, 38,4 33,6 36,1 ML3 Value of new lending ( mn) 5, 3,9 4, 5,1 4,3 5,3 5,8 5,4 6,1 5,1 5,5 5,9 5,2 ML2 Homemovers 6,5 5,3 5,2 6,1 5,3 6,6 7,2 7,4 8,6 6,6 7,4 7,7 6,5 ML3 Loan to value 814 846 843 835 849 85 822 85 85 846 85 85 822 ML2 Homemovers 723 724 723 73 735 738 737 727 732 732 729 729 736 ML3 Loan size 142,128 139,5 137,912 14,4 14,995 142, 145,35 144,999 145,248 144,982 143,1 142,22 145,72 ML2 Homemovers 18,999 18, 179,899 18,5 18, 18, 185,491 185,999 185,499 185,3 182,991 18, 184,996 ML3 Loan to income multiple 365 361 358 36 361 365 365 366 369 368 365 365 366 ML2 Homemovers 343 341 34 34 339 342 343 342 342 344 343 34 345 ML3 Repayments as % of income 171 174 172 17 171 173 172 174 175 175 174 173 172 ML2 Homemovers 175 175 175 174 175 175 175 177 177 178 178 177 176 ML3 Borrower income 41,21 41, 41, 41,752 41,383 41,533 42,241 42,18 42,417 41,921 41,873 41,632 42,5 ML2 Homemovers 55,128 55,2 55,88 55,83 55,149 55,165 56,416 56,678 56,819 56,383 56, 55,539 56,276 ML3 Homeowner Remortgaging Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18 Source table of remortgages Homeowners 31,1 48,7 34,9 32,2 4,9 35,9 36,9 46,9 38,6 36,1 51,5 4,4 34, ML1 Value of remortgages ( mn) Homeowners 5,4 8,7 6, 5,6 7,5 6,3 6,7 8,7 6,9 6,5 9,4 7, 6,1 ML1 Buy-to-let of new loans Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18 Source table House purchase 5,4 5,6 5,2 5,5 5,1 5,5 5,4 5,5 6,1 5,2 6,1 6,1 5,1 MM17 Remortgage 9,9 16,5 14,1 12,7 14,4 14,7 12,6 14,8 13,9 12,3 15,7 15, 12,4 MM17 Value of new lending ( mn) House purchase 8 8 7 8 7 7 8 8 8 7 8 8 7 MM17 Remortgage 1,6 2,6 2,2 2, 2,3 2,3 2, 2,4 2,3 2, 2,5 2,4 2, MM17 UK Finance publishes aggregate information on mortgages based on data supplied by our members, and grossed up to estimate total market size Remortgage figures shown in this release include refinancing with the same lender, in those cases where a new mortgage contract is created For this reason these figures will generally exceed those published by the Bank of England, whose remortgage data exclude such internal refinancing transactions Source data tables are available to UK Finance members or data associates from wwwcmlorguk/industry-data/industry-data-tables/ For information or enquiries, please contact ukfstatistics@ukfinanceorguk For media enquiries, journalists should contact press@ukfinanceorguk Next update: 13 March 219