Taylor Scott International News
Home owner house purchase lending totalled £10.7 billion in November, down 9% on October but up 18% on November 2014. The latest data from the Council of Mortgage Lenders also shows that first time buyers borrowed £4.2 billion, down 9% on October but up 14% on November last year. Home movers took out 32,300 loans, down 10% month on month and up 9% compared to November 2014. In total, this was £6.5 billion borrowed, down 10% on October but up 20% year on year. Home-owner remortgage activity was down 9% by volume and 14% by value compared to October. Compared to November 2014, remortgage lending was up 24% by volume and up 36% by value. Gross buy to let lending fell month on month, down 6% by volume and 8% by value, but the substantial growth year on year continued. ‘As expected, mortgage lending activity eased back as the normal dip in the winter months began,’ said Paul Smee, director general of the CML. ‘There was still growth across all lending types in November compared to the year earlier suggesting continued improvement. Our forecasts anticipate that gross lending will continue a slow but steady upward trajectory over the next two years,’ he added. A breakdown of the figures shows that house purchase lending in the UK in November saw a decrease month on month by volume and by value of mortgages advanced, but compared to November 2014 volumes and amount borrowed overall increased. As previously reported, UK gross lending overall in November totalled £20.5 billion, down 6% on October but up year on year by 27% compared to November 2014. This was the highest lending level in the month of November since 2007. First time buyer lending declined by volume and by value compared to October, but saw a year on year increase in loan numbers and amount borrowed. Competitive mortgage rates mean first time buyers continue to pay low levels of their monthly household income to service the capital and interest rate payments of their mortgage at 18.3% in November, joint lowest average percentage level since we began tracking this in 2005 alongside June and September 2015. Home movers borrowed £6.5 billion in November, this was down compared to October but was the highest November level since 2007. Home movers spent 18.2% of their monthly gross household income to pay capital and interest repayments, unchanged on October but a decrease compared to November 2014. Remortgage activity saw a decrease by volume and by value in November compared to October, but increased year on year to have the highest volume of remortgage loans in the month of November since 2011 and the most borrowed in the month of November since 2008. Gross buy to let lending decreased in November compared to October but was substantially up on last year. Buy to let remortgage continues to be the driver of… Taylor Scott International
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