This site uses web cookies · Read our Policy here
International: (+34) 952 198 657
Open navigation menu

Remortgage Activity Driving Up Gross Mortgage Lending

First name: 

 

Last name: 

 

Tel. Number: 

IPIN Disclaimer.

  We never share your data with any third parties.

*Note: IPIN investment opportunities are available subject
to location and certain knowledge / experience criteria.

News by Category

Archives



First Time Buyers  Council of Mortgage Lenders  Paul Smee 

Remortgage Activity Driving Up Gross Mortgage Lending

By - Monday 17 June 2013

Gross mortgage lending is on the rise, thanks to an increase in remortgage activity. Data from the Council of Mortgage Lenders (CML) revealed that lending grew by five per cent in April, although house price lending fell slightly compared to March. In the fourth month of the year a total of GBP 3.4 billion was advanced to borrowers remortgaging, up by ten per cent compared to March. While this is down three per cent year-on-year, the rate of decline has increased over the last two months.

In April, first-time buyers took out 19,400 loans (worth GBP 2.5 billion), down one per cent compared to March. Although year-on-year comparisons are distorted due to the impact of the end of the stamp duty concession in March and April last year, the first four months of 2013 have been positive. Between January and the end of April, 70,700 were advanced - 11 per cent stronger than the same time last year when just  63,500 loans were given.

Although the number of first-time buyers taking out loans decreased, their proportional share of total house purchase loans increased. In April, 46 per cent of all house purchase lending was to those looking to get onto the property ladder. This is considerably higher than the 38 per cent average seen in 2007. First-time buyers also borrowed a slightly larger amount in April than in March, typically seeking loans 3.25 times larger than their income. This is marginally up from 3.24 times in March. However, first-time buyer mortgage payments took a slightly lower proportion of their income - 19.1 per cent in April compared to 19.3 per cent in March.

Commenting on the data, CML director general Paul Smee said: "Lending to first-time buyers remains above the levels seen at the same time last year, despite the boost caused by the end of the stamp duty holiday in March last year. The Help to Buy scheme announced in this year's Budget should provide a further boost to the first-time buyer and home mover markets, but we still await further details on how the initiatives will work."

Subscribe to IPIN Live by Email - Get our News & Blog updates delivered directly to your inbox - click here


Comments

 

*This page is provided for information purposes only and should not be construed as offering advice. IPIN is not licensed to give financial advice and all information provided by IPIN regarding real estate should never be treated as specific advice or regulations. This is standard practice with property investment companies as the purchase of property as an investment is not regulated by the UK or other Financial Services Authorities.


«« Back to IPIN Live

Follow IPIN Global


Latest Content

Recent Comments

Powered by Disqus