Release date: 12 July 218 UK Finance: Mortgage Trends Update May 218 Mortgage market sees pre-summer boost as remortgaging continues strong upward trend Key data highlights: There were 32,2 new first-time buyer mortgages completed in the month, some 81 per cent more than in the same month a year earlier The 54bn of new lending in the month was 125 per cent more year-on-year The average first-time buyer is 3 and has a gross household income of 42, There were 31,1 new homemover mortgages completed in the month, some 44 per cent more than in the same month a year earlier The 66bn of new lending in the month was 48 per cent more year-on-year The average homemover is 39 and has a gross household income of 55, There were 36, new homeowner remortgages completed in the month, some 71 per cent more than in the same month a year earlier The 63bn of remortgaging in the month was 68 per cent more year-on-year There were 5,5 new buy-to-let home purchase mortgages completed in the month, some 98 per cent fewer than in the same month a year earlier By value this was 7bn of lending in the month, 222 per cent down year-on-year There were 14,6 new buy-to-let remortgages completed in the month, some 15 per cent more than in the same month a year earlier By value this was 23bn of lending in the month, 211 per cent more year-on-year Commenting on the data, Jackie Bennett, Director of Mortgages at UK Finance said: "The mortgage market is seeing a pre-summer boost, driven by a rise in the number of first-time and strong remortgaging activity It is also particularly encouraging to see an increase in homemovers, after a period of relative sluggishness in this important segment of the market "However, affordability remains a challenge for some prospective and this is reflected by a gradual increase in loan to income multiples "Meanwhile purchases in the buy-to-let market continue to be constrained by recent regulatory and tax changes, the full impact of which have yet to be fully felt 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 3 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: 14 August 218
Release date: 12 July 218 House Purchase of new loans of new residential purchase, secured by a first charge on the property 4, 3, 2, 32,2 81% Home movers 31,1 44% Value of new lending Value of new residential purchase, secured by a first charge on the property millions 8, 6, 4, 2, 54bn 125% Home movers 66bn 48% 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 85% 5% Home movers 736% 2% Loan size Median value of loans advanced 2, 175, 15, 125, 1, 142,452 4% Home movers 18, 16% 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 7 Home movers 343 5 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 15 173% -1% Home movers 175% % Borrower income Median gross income of all borrowers used in mortgage assessment 6, 55, 5, 45, 4, 35, 3, 41,54 24% Home movers 55,2 %
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 36, 71% Value of remortgages Value of residential loans remortgaged, secured by a first charge on the property 8, 6, 4, Home owners 63bn 68% 2, Buy-to-let of new loans of new buy-to-let purchase or remortgaging, secured by a first charge on the property 2, 15, 5, House purchase 5,5-98% Remortgage 14,6 15% 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 -222% Remortgage 23bn 211% Next update: 14 August 218
Release date: 12 July 218 Homeowner House Purchase May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Source table of new loans 29,8 36,2 31,1 34,8 31,1 3,4 34,2 3,4 23,9 24,8 31, 26,7 32,2 ML2 Home movers 29,8 36,6 33,9 38,9 32,2 32,1 35,8 3,3 24,6 24,5 28,3 25, 31,1 ML3 Value of new lending ( mn) 4,8 5,9 5,1 5,8 5,1 4,9 5,5 5, 3,9 4, 5,1 4,4 5,4 ML2 Home movers 6,3 7,8 7,3 8,5 6,9 6,8 7,5 6,5 5,3 5,2 6,1 5,4 6,6 ML3 Loan to value 845 833 85 85 841 848 847 814 846 843 835 849 85 ML2 Home movers 733 731 722 72 725 724 725 723 724 723 73 735 736 ML3 Loan size 137, 138,958 139, 14, 138, 139, 138, 141,999 139,5 138, 14,495 141,575 142,452 ML2 Home movers 177,245 18, 18, 182,75 18, 179,95 175,5 18,999 18, 179,955 18,5 18, 18, ML3 Loan to income multiple 358 359 36 363 361 36 364 364 361 358 36 362 365 ML2 Home movers 338 339 338 34 338 341 34 343 341 34 341 34 343 ML3 Repayments as % of income 173 173 174 175 173 172 173 171 174 172 17 171 173 ML2 Home movers 175 175 176 176 175 175 175 175 175 175 174 175 175 ML3 Borrower income 4,549 41, 41, 41,265 4,848 4,972 4,461 41,187 41, 41, 41,76 41,48 41,54 ML2 Home movers 55, 55,286 55,847 56,15 55,661 55,96 54,277 55,182 55,2 55,123 55,789 55,224 55,2 ML3 Homeowner Remortgaging May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Source table of remortgages Home owners 33,6 34,5 38,1 37,2 36, 41, 39,1 31,1 48,7 35, 32,3 4,7 36, ML1 Value of remortgages ( mn) Home owners 5,9 6, 6,9 6,5 6,4 7,5 6,8 5,4 8,7 6, 5,6 7,5 6,3 ML1 Buy-to-let of new loans May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Source table House purchase 6,1 6,7 6,4 6,9 6,4 6,7 6,7 5,3 5,6 5,2 5,5 5, 5,5 MM17 Remortgage 12,7 12,6 13,7 13,2 12,4 14,9 13,7 9,8 16,4 14,1 12,6 14,3 14,6 MM17 Value of new lending ( mn) House purchase 9 9 9 1, 9 1, 9 7 8 7 8 7 7 MM17 Remortgage 1,9 2, 2,2 2,1 2, 2,4 2,2 1,6 2,6 2,2 2, 2,3 2,3 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: 14 August 218