Posts with tag: Mortgage lending

Lloyds is Biggest Lender with One Fifth of New Mortgages

Published On: September 7, 2015 at 9:16 am

Author:

Categories: Finance News

Tags: ,,,

Lloyds is Biggest Lender with One Fifth of New Mortgages

Lloyds is Biggest Lender with One Fifth of New Mortgages

Lloyds Banking Group remains the biggest mortgage lender, lending around one fifth of new mortgages last year, according to the Council of Mortgage Lenders (CML).

Gross lending experienced strong growth in 2014, with a total of £203 billion being lent, a 14% rise on 2013, but still significantly lower than the £357 billion lent in 2007.

Lloyds, Santander, Nationwide, Barclays, RBS and HSBC had 74% of mortgage market share last year.

In total, Lloyds lent £40.3 billion in 2014, 19.8% of the market share. Santander leapt to second place, lending £27.5 billion, 13.5% of the market share.

Nationwide was third with £26.9 billion, or 13.2% of the market share. Behind the building society was Barclays, with 10% of the market share, lending £20.3 billion. RBS followed with 9.7% or £19.7 billion and HSBC completed the top six after lending £12.6 billion, or 6.2% of the market share.

Although the top six witnessed growth of 17%, those ranked seventh to 20th experienced much stronger growth of 46% overall.

Four lenders saw substantial growth in volumes, causing each to move a number of places up the rankings. The Bank of Ireland doubled its lending, and OneSavings Bank at 88%, Paragon at 75% and Clydesdale at 61% all experienced high rises in volume.

The CML predicts new mortgage lending to increase to £209 billion this year and £230 billion next year.

UK mortgage approvals at highest rate since 2014

Published On: September 2, 2015 at 4:13 pm

Author:

Categories: Finance News

Tags: ,,

Mortgage approvals in Britain during July hit their greatest level since February 2014, according to new figures released by the Bank of England.

Data from the report shows that there were 68,764 mortgage approvals during the month, a rise of 16,4% since November’s low of 59,100.[1]

Rising

Experts suggest that these figures show that the housing market is beginning to return to its pre-recession rates, with mortgage approvals rising in five of the last seven months. House prices are also rising.

In addition, net mortgage lending was up by £2,709bn during July, which represents the greatest increase since July 2008.[1]

Chairman of the Intermediary Mortgage Lenders Association, Charles Haresnape, also noted that this total is the largest since the introduction of the Mortgage Market Review. ‘With 7% more approvals compared with the six month average, it is a clear indication that health is returning to a market that has been under significant pressure to perform while adjusting to new working practices,’ Haresnape noted.[1]

UK mortgage approvals at highest rate since 2014

UK mortgage approvals at highest rate since 2014

 

Uncertainty

Mr Haresnape went on to warn that with European Mortgage Credit Directive rules starting to come in effect this month, there is likely to be extra uncertainty ahead for the market.

‘With more regulation on the way and a potential rise in the cost of borrowing on the cards, the six month window to implement the MCD rules will be a challenge for all concerned,’ he said.

‘On the positive side, rising approvals suggest consumer appetite is strong and lenders will also be striving to meet their end of year targets, which should support some competitive deals. We must hope that the impacts of change do not weigh down too heavily on what otherwise looks like a strengthening market recovery,’ Haresnape added.[1]

Howard Archer, chief economist at IHS Global Insight, said that it was possible that July’s performance was raised by house buyers looking to lock in low mortgage rates, before interest rates rise.

‘On the positive side, rising approvals suggest consumer appetite is strong and lenders will also be striving to meet their end of year targets, which should support some competitive deals. We must hope that the impacts of change do not weigh down too heavily on what otherwise looks like a strengthening market recovery,’ Archer explained.[1]

[1] http://www.propertywire.com/news/europe/uk-mortgage-approvals-rise-2015090110929.html

 

 

Keystone announces new range

Published On: September 1, 2015 at 3:55 pm

Author:

Categories: Landlord News

Tags: ,,

Keystone has announced that is has revealed a fresh, short-term finance range, providing a selection of bridging loans aimed at residential landlords.

Supplied by Lancashire Mortgage Corporation, funding for the scheme comes from the same provider as Keystone’s Solutions Range.

Products

There are six products in the new range and are all priced relative to the credit profile of the applicant, with different rates for prime borrowers to those with light-medium or medium-heavy adverse credit.

Rates begin from 0.85% per month for loans priced between £50k and £1m. As standard, Keystone will lend up to 70% LTV, rising to up to 75% by referral. It should be noted that there is no price differentiation between individuals and limited company applicants.[1]

Keystone announces new range

Keystone announces new range

‘Brokers looking for a swift deal should be delighted with the range,’ observed David Whittaker, managing director of Keystone. ‘Lending decisions can be made within hours if needed and funds can be released in five working days or less. There are no exit fees and brokers will be paid a fee of 0.5% of the loan amount on the day of completion,’ he added.[1]

[1] http://www.propertyreporter.co.uk/finance/new-short-term-finance-range-launched-for-landlords.html

 

 

Mortgage Lending Highest in July for Seven Years

Published On: August 21, 2015 at 12:36 pm

Author:

Categories: Finance News

Tags: ,,,

Mortgage lending levels were the highest in July than any other month in the last seven years, according to the Council of Mortgage Lenders (CML).

The CML estimated that gross lending in July hit £22 billion.

Economist at the CML, Mohammad Jamei, says: “At £22 billion, our estimate of gross lending in July is the highest monthly total for seven years, but is in line with our expectations that lending would strengthen in the second half following subdued activity earlier in the year.”

Mortgage Lending Highest in July for Seven Years

Mortgage Lending Highest in July for Seven Years

The CML’s calculation contrasts to e.surv’s estimates, which said July experienced a drop in the amount of mortgage approvals. Read more here: /e-surv-estimates-drop-in-mortgage-approvals-for-july/

The CML says its £22 billion estimation is up by around £2 billion on June’s actual figure.

Jamei continues: “We expect lending activity in the rest of the year to be underpinned by improving economic fundamentals, but kept in check as any upward pressure on house prices further stretches affordability for some buyers.

“Today’s data is in line with our forecast that gross lending will rise to £209 billion this year, 3% higher than in 2014.”1

The CML also predicts:

  • Housing and mortgage market activity will continue to be supported by a strong economy as we enter the second half of the year, with low levels of unemployment, near zero inflation and healthy wage growth.
  • A lack of properties on the market and house price rises that surpass earnings will halt activity.
  • After an interest rate rise was suggested for 2015, expectations of the first increase have moved to the middle of 2016.

The CML market commentary report states: “Over the past few months, activity has picked up and approvals data suggests this is likely to continue into the second half of the year. This was in contrast to 2014 where activity started the year strongly and began to slow after the first quarter.

“Demand in the housing market looks set to remain strong, underpinned by a recovery in the economy. Consumer confidence has bounced back recently with people more confident about personal finances and the economy, mortgage rates remaining close to historic lows, wage growth continuing to be robust and approvals for house purchases at their highest level since the start of 2014.”1

GDP grew by 0.7% in the three months to June and the Bank of England (BoE) now expects the UK economy to grow by 2.8% this year, up from the previous forecast of 2.5%.

Regular pay has also risen by 2.8% on last year and alongside zero inflation, the CML says that workers and potential buyers have experienced “the highest boom in real terms since 2007.”1

1 http://www.propertyindustryeye.com/mortgage-lending-highest-in-seven-years/

 

Mortgage Lending to Hit £286.8bn by 2019

Published On: August 18, 2015 at 8:52 am

Author:

Categories: Finance News

Tags: ,,,

Mortgage lending will grow in the next four years, predicts a report by Timetric, which states that wider economic recovery, a rise in house building and demand-based incentives for the purchase of newly built properties will cause a healthier appetite for buying.

Mortgage Lending to Hit £286.8bn by 2019

Mortgage Lending to Hit £286.8bn by 2019

The report says that the fastest growth in mortgage lending will be in 2017, with an estimated rate of 11.7%. This is mostly due to the Office for Budget Responsibility expecting to see the largest rise in UK house prices over this period.

Timetric forecasts a total of £218.6 billion in gross lending in 2015, before growing to £241.6 billion in 2016 and hitting £286.8 billion in 2019.

However, outstanding mortgage balances are expected to grow at a slower pace. Repayments are likely to rise as stronger economic growth causes an increase in the Bank of England (BoE) base rate and therefore higher mortgage interest rates.

Outstanding balances are forecast to reach £1.33 trillion by the end of this year and £1.39 trillion by 2019.

An analyst at Timetric, Ben Carey-Evans, says: “Rising interest rates, combined with reduced growth in the UK housing market, is set to stunt increases somewhat from the 15% and 22% rates seen in 2014 and 2013 respectively.

“Improving economic conditions, however, particularly the continuation of improving real wages – due to extremely low inflation – should see gross lending rising at a steady rate up to 2019.

“Growth in the mortgage market will be supported by rising house prices necessitating larger value loans and regional variations in house prices will continue to influence the distribution of mortgage lending.”1 

1 http://www.propertyreporter.co.uk/finance/mortgage-lending-to-reach-2868bn-by-2019.html#.VdHzyLYLkOU.twitter

Mortgage lending forecasted to hit £286.8bn by 2019

Published On: August 17, 2015 at 4:43 pm

Author:

Categories: Finance News

Tags: ,,

There is to be a growing demand for mortgage lending over the next four years, driven by a wider economic recovery, greater housing construction and more-tempting incentives.

That is the result of a report from a report by Timetric, which suggests that there is to be a boom in the coming years.

Optimism

The greatest growth in mortgage lending is expected in 2017, with a forecasted rate of 11.7%. This prediction coincides with the Office for Budget Responsibility also suggesting that the largest rise in British property prices will occur during the same period.[1]

Timetric expect that gross lending will hit £218.6bn by the end of the 2015, before rising further to £241.6bn in 2016, eventually reaching £286.8bn in 2019.[1]

However, mortgage outstanding balances are expected to grow at a slower pace. Repayments are also likely to increase as a broader economic growth generates a rise in the official Bank of England policy rate and an increase in banks’ mortgage interest rates. Outstanding balances are tipped to hit £1.33 trillion by the end of this year, rising to be £1.39 trillion by 2019.[1]

Mortgage lending forecasted to hit £286.8bn by 2019

Mortgage lending forecasted to hit £286.8bn by 2019

Rising rates

Ben Carey-Evans, Analyst at Timetric, commented, ‘rising interest rates, combined with reduced growth in the UK housing market, is set to stunt increases somewhat from the 15% and 22% rates seen in 2014 and 2013 respectively. Improving economic conditions, however, particularly the continuation of improving real wages – due to extremely low inflation – should see gross lending rising at a steady rate up to 2019.’[1]

‘Growth in the mortgage market will be supported by rising house prices necessitating larger-value loans, and regional variations in house prices will continue to influence the distribution of mortgage lending,’ Carey-Evans concluded.[1]

[1] http://www.propertyreporter.co.uk/finance/mortgage-lending-to-reach-2868bn-by-2019.html