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Research 29 June 2015

Mortgage market June 2015

Aggregate mortgage lending in the first five months of the year is 4.5% lower than in the corresponding period in 2014.

Nick Barnes, Head of Research
  • Gross mortgage lending in May (not seasonally adjusted) showed little change on the previous month or on the same month last year, according to the Council of Mortgage Lenders (CML). It rose by 2% on the previous month to an estimated £16.2 billion, but was 3% lower than the £16.8 billion of lending undertaken in May 2014.
  • CML data shows that the number of BTL mortgage loans for house purchase fell by 6.9% in April compared to March but was 8% higher than in April 2014.
  • New figures from the DCLG show that the number of homes bought under the government's Help-to-Buy equity loan scheme has slowed for five successive months. Completions under the scheme in Q1 were down 17% compared to the start of 2014 and had almost halved compared to the previous quarter.
  • Nearly 50% of 25-34 year olds say they may need a mortgage that lasts into retirement according to a survey from the Building Societies Association (BSA). However, over 25% of respondents also think they will struggle to get a mortgage into retirement because their credit history, income or age will count against them. The BSA confirms that paying off a mortgage by the age of 65 is no longer a reality for many households.
  • Almost one in three young people preparing to buy a home have moved back in with their parents, according to a study from the Halifax. First-time buyers need a deposit of at least £9,000 to qualify for a mortgage on the average home in Britain, which costs £179,817 according to official figures. The study found that 28% of adults with children aged between 20 and 45 said they were accommodating them at the family home, up from 24% when a similar study was carried out three years ago.