Release date: 14 August 218 UK Finance: Mortgage Trends Update June 218 House purchase activity slows in June but remortgaging activity remains high Key data highlights: There were 34,9 new first-time buyer mortgages completed in the month, some 36 per cent fewer than in the same month a year earlier The 58bn of new lending in the month was 17 per cent down year-on-year The average first-time buyer is 3 and has a gross household income of 42, There were 33,7 new homemover mortgages completed in the month, some 79 per cent fewer than in the same month a year earlier The 73bn of new lending in the month was 64 per cent down year-on-year The average home mover is 39 and has a gross household income of 56, There were 37,4 new homeowner remortgages completed in the month, some 84 per cent more than in the same month a year earlier The 68bn of remortgaging in the month was 133 per cent up year-on-year There were 5,4 new buy-to-let (BTL) home purchase mortgages completed in the month, some 194 per cent fewer than in the same month a year earlier By value this was 8bn of lending in the month, 111 per cent down year-on-year There were 12,6 new buy-to-let (BTL) remortgages completed in the month of June, the same as June 217 By value this was 2bn of lending in the month, the same year-on-year Commenting on the data, Jackie Bennett, Director of Mortgages at UK Finance said: Remortgaging continued to dominate in June with figures up 13 per cent on the same period last year as existing two and three year products came to an end and borrowers opted for new deals Despite a boost in recent months, speculation of a base rate rise saw the market remain relatively subdued with year-on-year declines in activity among both first time and homemovers as customers adopted a wait and see approach House price inflation has moderated in recent months yet it still remains above earnings growth, and so affordability is still a challenge for would-be borrowers And although the full impact has yet to be felt, tax and regulatory changes continue to bear down on borrowing activity in the buyto-let purchase market Notes to Editor 1 For more information please call the UK Finance press office on 2 7416 675 or mail press@ukfinanceorguk 2 UK Finance is a trade association which was formed on 1 July 217 to represent the finance and banking industry operating in the UK It represents around 25 firms in the UK providing credit, banking, markets and payment-related services The new organisation brings together most of the activities previously carried out by the Asset Based Finance Association, the British Bankers Association, the Council of Mortgage Lenders, Financial Fraud Action UK, Payments UK and the UK Cards Association
3 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: 12 September 218
Release date: 14 August 218 House Purchase of new residential purchase, secured by a first charge on the property 4, 3, 2, 34,9-36% Home movers 33,7-79% Value of new lending Value of new residential purchase, secured by a first charge on the property millions 8, 6, 4, 2, 58bn -17% Home movers 73bn -64% Loan to value Ratio of loan amount advanced to property value Year-on-year comparison is the absolute change in the percentage Percentage 9 85 8 75 7 65 82% -14% Home movers 736% 5% Loan size Median value of loans advanced 2, 175, 15, 125, 1, 145,364 46% Home movers 185,495 31% 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 Multiple 37 36 35 34 33 32 365 6 Home movers 343 4 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 Percentage 18 175 17 165 16 155 15 172% -1% Home movers 175% 1% Borrower income Median gross income of all borrowers used in mortgage assessment 6, 55, 5, 45, 4, 35, 3, 42,2 29% Home movers 56,43 2%
millions millions Remortgaging of remortgages of residential loans remortgaged, secured by a first charge on the property 55, 5, 45, 4, 35, 3, 25, 2, Home owners 37,4 84% Value of remortgages Value of residential loans remortgaged, secured by a first charge on the property 8, 6, 4, Home owners 68bn 133% 2, Buy-to-let of new buy-to-let purchase or remortgaging, secured by a first charge on the property 2, 15, 5, House purchase 5,4-194% Remortgage 12,6 % 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 8bn -111% Remortgage 2bn % Next update: 12 September 218
Release date: 14 August 218 Homeowner House Purchase Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Source table 36,2 31,1 34,8 31,1 3,4 34,2 3,4 24, 24,8 31, 26,7 32,2 34,9 ML2 Home movers 36,6 33,9 38,9 32,2 32,1 35,8 3,3 24,6 24,5 28,3 25,2 31,3 33,7 ML3 Value of new lending ( mn) 5,9 5,1 5,8 5,1 4,9 5,5 5, 3,9 4, 5,1 4,4 5,3 5,8 ML2 Home movers 7,8 7,3 8,5 6,9 6,8 7,5 6,5 5,3 5,2 6,1 5,4 6,7 7,3 ML3 Loan to value 833 85 85 841 848 847 814 846 843 835 849 85 82 ML2 Home movers 731 722 72 725 724 725 723 724 723 731 735 738 736 ML3 Loan size 138,958 139, 14, 138, 139, 138, 141,995 139,5 138, 14,495 14,995 142, 145,364 ML2 Home movers 18, 18, 182,75 18, 179,95 175,5 18,999 18, 179,96 18,5 18, 18, 185,495 ML3 Loan to income multiple 359 36 363 361 36 364 364 361 358 36 361 365 365 ML2 Home movers 339 338 34 338 341 34 343 341 34 341 339 342 343 ML3 Repayments as % of income 173 174 175 173 172 173 171 174 172 17 171 173 172 ML2 Home movers 175 176 176 175 175 175 175 175 175 174 175 175 175 ML3 Borrower income 41, 41, 41,265 4,848 4,972 4,462 41,187 41, 41, 41,76 41,386 41,529 42,2 ML2 Home movers 55,286 55,847 56,15 55,661 55,97 54,274 55,182 55,2 55,12 55,792 55,173 55,185 56,43 ML3 Homeowner Remortgaging Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Source table of remortgages Home owners 34,5 38,1 37,2 36, 41, 39,1 31,1 48,7 35, 32,3 41,4 36,2 37,4 ML1 Value of remortgages ( mn) Home owners 6, 6,9 6,5 6,4 7,5 6,8 5,4 8,7 6, 5,6 7,6 6,3 6,8 ML1 Buy-to-let Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Source table House purchase 6,7 6,4 6,9 6,4 6,7 6,7 5,3 5,6 5,2 5,5 5, 5,5 5,4 MM17 Remortgage 12,6 13,7 13,2 12,4 14,9 13,7 9,8 16,4 14,1 12,6 14,3 14,6 12,6 MM17 Value of new lending ( mn) House purchase 9 9 1, 9 1, 9 7 8 7 8 7 7 8 MM17 Remortgage 2, 2,2 2,1 2, 2,4 2,2 1,6 2,6 2,2 2, 2,3 2,3 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: 12 September 218