Posts with tag: house purchase lending

House purchasing up by 20% annually

Published On: October 8, 2015 at 4:27 pm


Categories: Property News

Tags: ,,

A survey from e.surv has found that over the past year, the total number of house purchase mortgage approvals has reached a twenty-month high, rising by 19.8%.


This represents the greatest monthly lending total since January 2014. In addition, last month saw 72,930 house purchase lending approvals. In August, there were 71,003, meaning that there was a 2.7% month-on-month increase.[1]

‘Mortgage lending is enjoying a late summer,’ observed Richard Sexton, director of e.surv chartered surveyors. ‘After record house purchase lending through the summer months, the numbers suggest that confidence within the UK housing market is still steadily strengthening. With interest rate speculation dying-down and a rate hike before next year appearing increasingly unlikely, lenders appetite for growth appears unchanged.’[1]

Sexton feels that, ‘this increase is both tempered by and benefiting from new regulations, including the Mortgage Market Review changes which came into effect earlier this year. Levels of High LTV lending are stable and reflect a steady, rather than volatile pace of growth.’[1]

‘It’s not just lenders who have been affected by a calmer financial outlook in recent months, prospective mortgage borrowers have seen their potential savings bolstered by low inflation rates and a recovering economic climate. Comparisons with the previous high in January 2014 underscore this point. Today’s progress isn’t the result of a final gasp of artificial support from the likes of Funding for Lending – but represents seven years of gradual rebuilding and consolidation by mortgage lenders,’ he added.[1]

Small-deposit, significant increase

Additionally, small-deposit lending soared to its highest level since October 2008 during the last month. The new post-recession high saw lending to buyers with a deposit of just 15% or less rise both monthly and annually. As a result, small-deposit borrowers made up 18.1% of overall house purchase mortgage approvals in September.[1]

In absolute terms, there were 13,200 small-deposit house purchase loans approved in September, up by 7.4% from August’s figure of 12,288. Annually, this represented a 22.5% increase.[1]

These increases particularly benefited first-time buyers, with the latest First Time Buyer Tracker from Your Move and Reeds Rains indicating that August 2015 saw 30,200 first-time buyer sales. This was a rise of 27.4% from May 2015.[1]

House purchasing up by 20% annually

House purchasing up by 20% annually

Mr Sexton noted that, ‘September was a particularly positive month for anyone looking to buy a home with a smaller deposit, even when compared to more generally benign conditions.’[1]

‘A more active mortgage market won’t directly build more homes. Deeper reforms to planning and skills are still needed to help that side of the equation if more demand via mortgage lending isn’t simply set to push up prices faster in turn,’ he added.[1]

Regional rises

Southern regions saw the most significant rises in small-deposit lending. By region, the rises recorded were:

Region Proportion of small-deposit loans(September 2015) Proportion of small-deposit loans(August 2015)
Yorkshire 29% 27%
Northwest 26% 26%
Midlands 21% 22%
Northern Ireland 21% 17%
UK Average 18% 17%
Scotland 17% 17%
South/South Wales 17% 15%
Eastern 15% 14%
South East 14% 12%
London 8% 8%

The South, South East and South Wales are emerging as improving locations for small-deposit borrowers. In the South East, small-deposit borrowers now represent 14% of all house purchase borrowers, up from 12% in August.

However, Yorkshire continues to retain its reputation as a great place for first-time buyers and in tandem, small-deposit borrowers, who represent 29% of all house purchase lending. Only the Midlands region saw a marginal dip in the proportion of small-deposit borrowers within their total house purchase lending[1]




Small year-on year growth in buy-to-let market during February

Published On: April 14, 2015 at 4:22 pm


Categories: Finance News

Tags: ,,

Recent findings from the Council of Mortgage Lenders suggest that the buy-to-let market is still steadily growing, particularly when year-on-year figures are considered.



The results released from the CML show that buy-to-let advances totalled 15,900 during February, down 13% from January but up by 11% in comparison to February 2014.[1]


Loans for buy-to-let accumulated £2.2bn of overall lending during February, down on January’s figures by 12% but again up on February 2014, by 16%. Buy-to-let loans taken out for house purchases numbered 7,400, 3% down on January but up by a nominal 1% from one year ago.[2]


Numbers of buy-to-let loan remortgages fell by a considerable 19% during February to 8,400, however this figure was up by 23% in the past 12 months. Overall value of these loans totalled 1.3bn, a drop of 13% month on month but 3% up on February last year.[3]


Seasonal Factors

Director general of the CML, Paul Smee, believes that seasonal features have played their part in the latest figures. He commented that, ‘as with January, seasonal factors have played their part in dampening house purchase lending activity in February.’ Smee feels that the, ‘typical seasonal trend may also be exacerbated by uncertainty ahead of the general election,’ but said that CML, ‘expect to see an upturn in the spring and summer months.’[4]


Smee went on to say that, ‘buy-to-let, in contrast, has shown year-on-year lending increases, due almost completely to remortgaging which is typically strong in the buy-to-let market.’[5]

Small year-on year growth in Buy-to-let market during February

Small year-on year growth in Buy-to-let market during February


Adrian Gill, director of Your Move and Reeds Rains estate agents, feels that the U.K is, ‘witnessing a slightly more measured mortgage market,’ but says that should not be a concern, ‘in the midst of extraordinary circumstances.’ Gill believes that there has been, ‘an exceptional year of progress and regulatory reforms to the lending process.’[6]



Mr Gill also believes that the country is heading towards, ‘one of the most uncertain General Elections in living memory,’ with David Cameron pledging to, ‘help over a million social housing tenants get on the property ladder.’ Gill though is cautious, stating that, ‘any additional rockets to demand would need to be matched with new homes available to buy,’ or the pent-up pressure in the market will just grow, propelling prices along with it.’[7]


He continued by saying that, ‘Tory proposals to unlock brownfield land for housebuilding could perhaps have more far-reaching tremors through the market.’ This said, Gill thinks, will lead many to be, ‘speculating today whether 400,000 homes over a five year period is truly enough to abate our current housing shortage.’[8]