Increased activity in the first-time buyer sector, as well as among home movers, contributed to a 6% rise in the number of loans for house purchase in November according to new data released today by the Council of Mortgage Lenders.
The Council of Mortgage Lenders today estimates that gross lending in November was around £12.9 billion, and publishes its market forecasts for 2013-14, alongside a self-evaluation of the mortgage market based on interviews with the UK's mortgage lenders. Overall, there are grounds for optimism that the market recovery which began this year should continue next year, reinforced in part by Funding for Lending scheme effects.
Lower interest rates enable borrowers to pay off mortgages more quickly. But, with household budgets under pressure, how much have they been doing so? Analysis published for the first time today gives some surprising – and encouraging – answers. One-third of loans taken out since 2005 have been overpaid. And the £31 billion in additional capital payments is more than 10% over and above what was actually due. It amounts to a sizeable accumulation of household wealth.
The number of loans advanced to first-time buyers in October returned to levels similar to those seen over the summer following a slow September, according to new data released today by the Council of Mortgage Lenders.
The Council of Mortgage Lenders today welcomed the Government's extension of the Support for Mortgage Interest (SMI) scheme.
Today, we look at why the housing market in London differs from the rest of UK. The capital’s rapid growth, attraction to migrants from within and outside the UK, and governance by a mayor create unique challenges and opportunities. We look forward to publication of London’s long-awaited housing strategy, and hope it maximises the potential for lenders to contribute to future needs.
In the first of a series of new quarterly reports on lending in London, the Council of Mortgage Lenders reports that a total of 10,000 first-time buyers took out a mortgage in London in the third quarter of 2012. This was the highest number in the capital in a single quarter for almost three years.
There are signs that the market weakness of recent months may be coming to an end, according to the Council of Mortgage Lenders. The CML's forward estimate is that total gross mortgage lending recovered to £12.9 billion in October. This would reverse the sharp dip reported for September, and imply that lending was 4% higher than the same month a year earlier.
At our recent annual conference, the new housing minister Mark Prisk set a key challenge for lenders in his keynote address: let’s bust the myth that mortgages simply aren’t available.
While house purchase lending in the third quarter showed a 13% rise, monthly lending has not followed an even path during the quarter. On a monthly basis, September saw substantially lower house purchase lending than August, although remortgaging rose over the month. Following a particularly strong August, a total of 44,400 house purchase loans were advanced in September, down from 53,900 loans last month and 48,800 loans in September last year.
The value of buy-to-let mortgages taken out in the third quarter of 2012 totalled £4.2 billion, an increase of 8% over the £3.9 billion advanced in the preceding three months, according to data published today by the Council of Mortgage Lenders. The number of loans advanced in the three months to the end of September totalled 34,400, 2% more than in the second quarter of 2012 (33,600).
The number of mortgage possessions fell again in the third quarter of 2012, according to data released today by the Council of Mortgage Lenders.
Speaking today at the Council of Mortgage Lenders' annual conference, CML Chairman Martijn Van der Heijden reminded delegates that, despite relatively subdued market conditions, one million households have become first-time buyers since the credit crunch, accounting for 1 in 10 of all current mortgage holders.
In a time of intense pressure on the UK economy both at home and abroad; impending regulation of the sector in Europe and in the UK, it is, more than ever, crucial for lenders, regulators and other stakeholders to discuss solutions to the challenges facing the UK mortgage market.
The main article in today’s issue of CML News & Views updates our analysis of housing equity held by borrowers, and shows what’s happened in the last 18 months. Overall, the amount of unmortgaged equity remains unchanged at around £800 billion. But the number of borrowers in negative equity has declined more than 100,000, or 13%, and now stands at just over 700,000. And the proportion of first-time buyers in negative equity has also fallen.
The Council of Mortgage Lenders estimates that gross mortgage lending in September was £11.6 billion. This is 10% lower than August’s gross lending figure of £12.9 billion and a 15% fall from £13.7 billion in September 2011.
Today, we contrast the history of interest-only mortgages – once the most popular choice for borrowers – with their future as a niche product. Regulation (which we support) is reinforcing the trend. But interest-only rightly remains the norm for buy-to-let borrowers. Read more...
The Council of Mortgage Lenders welcomes today's publication by the Financial Services Authority of "Journey to the FCA", a paper that gives more detail about how its successor, the Financial Conduct Authority, will operate.
Gross mortgage lending was weighed down by weak remortgage lending in August, despite a strong increase in house purchase lending, according to new data from the Council of Mortgage Lenders.
The Council of Mortgage Lenders estimates that gross mortgage lending in August was £12.6 billion. This is marginally lower (1%) than July’s gross lending figure of £12.7 billion and a 4% fall from £13.1 billion in August 2011.
Six months since its launch, NewBuy in England has made an encouraging start. Reservations under the scheme now total more than 1,300, and this autumn represents a major opportunity for concerted marketing of the initiative by home-builders.
A rise in lending to home movers was the main driver of an increase in house purchase lending in July, according to data published today by the Council of Mortgage Lenders.
What are we to make of the apparent growth in the bridging finance market? Is it purely a genuine reflection of legitimate market needs, or could there also be other influences at work? In this article, we explain the differences between regulated and unregulated short term secured lending, and set out some of the FSA’s recent views. We consider how this niche part of the market interacts with mainstream buy-to-let and owner-occupier mortgages, and outline some of the issues affecting the bridging sector.
Reactions to our arrears and possessions data for the second quarter left some commentators scratching their heads. Why, if repossessions were continuing to fall, were we not revising down our 45,000 forecast for the year as a whole? Did it suggest some sinister worsening based on influences that we knew about that others didn’t?
The Council of Mortgage Lenders estimates that gross mortgage lending in July increased to £12.7 billion. Lending rose by 8% from £11.7 billion in June and was 2% higher than the total of £12.5 billion in July 2011.