Mortgage Trends Update

Release date: 13 June 2019

UK Finance: Mortgage Trends Update April 2019

Key data highlights:

There were 27,370 new first-time buyer mortgages completed in April 2019, 7.9 per cent more than in the same month in 2018. There were . 25,450 homemover mortgages completed in April 2019, 6.4 per cent more than in the same month a year earlier.

There were 18,920 new remortgages with additional borrowing in April 2019, 0.3 per cent more than in the same month in 2018. For these remortgages, the average amount taken out in April was £54,000. Additionally, 19,140 were simple pound-for-pound remortgages (with no . additional borrowing), 6.2 per cent fewer than in April 2018. In total, there were 3.1 per cent less residential remortgages in April 2019 than in the same month a year earlier.

There were 5,100 new buy-to-let house purchase mortgages completed in April 2019, the same as this time last year. There were 14,400 . remortgages in the buy-to-let sector, the same as this time last year.

Notes to Editor

1 For more information please call the UK Finance press office on 020 7416 6750 or mail [email protected].

2 UK Finance is the collective voice for the banking and finance industry. Representing more than 250 firms across the industry, we act to enhance competitiveness, support customers and facilitate innovation. 3 With effect from February 2019, we have made material changes to our mortgage trends release. You can find more information on these changes in the accompanying FAQs and blog published on the UK Finance website. 4 The data shown is grossed up from the sample of lenders reporting to reflect total market size, based on total market volumes of Mortgage Product Sales Data published by the FCA, so our historical figures are subject to revision as and when the FCA makes revisions to the market totals. The average figures shown are means. Affordability measures are based on mean averages of calculations for individual transactions. Capital & interest payment calculations only include mortgages taken out on a full capital and interest repayment basis and are calculated based on the reported repayment term, interest rate, loan amount and income for each transaction.

5 Income metrics are presented on a gross household basis, as the sum of all income sources for all borrowers included in the affordability assessment.

Next update: 16 July 2019 Release date: 13 June 2019

Latest House Purchase (Apr-2019) Y-o-Y comparison 40,000

30,000 First-time buyers 27,370 7.9% Number of new residential 20,000 mortgage loans for house

Number of new loans Number purchase, secured by a first 10,000 charge on the property 0 Homemovers 25,450 6.4% Apr-18 Jun-18 Aug-18 Oct-18 Dec-18 Feb-19 Apr-19

Latest (Apr-2019) Y-o-Y comparison

10,000 8,000 First-time buyers £4.6bn 11.0% Value of new residential 6,000 mortgage loans for house £ millions 4,000 Value of new lending purchase, secured by a first charge on the property 2,000 0 Homemovers £5.6bn 10.2% Apr-18 Jun-18 Aug-18 Oct-18 Dec-18 Feb-19 Apr-19 Latest Remortgaging (Apr-2019) Y-o-Y comparison

30,000 Homeowner 25,000 remortgages with Number of residential loans 18,920 0.3% 20,000 remortgaged, secured by a equity withdrawn first charge on the property, 15,000 Number of remortgages split by remortgages where 10,000

Number Homeowner equity has been withdrawn, 5,000 and those which are a simple remortgages refinance. - without equity 19,140 -6.2% Apr-18 Jun-18 Aug-18 Oct-18 Dec-18 Feb-19 Apr-19 withdrawn (simple refinance)

Latest (Apr-2019) Y-o-Y comparison 5,000 4,000 Homeowner Value of residential loans 3,000 remortgages with £3.5bn -3.3% equity withdrawn remortgaged, secured by a 2,000 first charge on the property, 1,000 Value of remortgages split by remortgages where millions £ equity has been withdrawn, Homeowner - remortgages and those which are a simple Apr-18 Jun-18 Aug-18 Oct-18 Dec-18 Feb-19 Apr-19 refinance. without equity £3.3bn -8.1% withdrawn (simple refinance) Residential Latest Affordability (Apr-2019) Y-o-Y comparison

80.0 First-time buyers 78.0% 0.8% 75.0

70.0

Ratio of loan amount Percentage advanced to property value. 65.0 Loan to value Year-on-year comparison is Homemovers 67.9% 1.2% the absolute change in the 60.0 percentage 55.0

50.0 Homeowner Apr-18 Jun-18 Aug-18 Oct-18 Dec-18 Feb-19 Apr-19 remortgage 57.2% 0.5%

Latest (Apr-2019) Y-o-Y comparison

250,000 First-time £168,808 3.0% 225,000 buyers

Loan size 200,000

175,000

Mean value of loans advanced Number Homemovers 150,000 £221,399 3.6%

125,000

100,000 Apr-18 Jun-18 Aug-18 Oct-18 Dec-18 Feb-19 Apr-19 Homeowner remortgage £177,882 -2.7%

Latest (Apr-2019) Y-o-Y comparison

3.70 First-time buyers 3.50 0.02 3.50

3.30 Ratio of loan amount Multiple advanced to gross income of Loan to income multiple all borrowers. Year-on-year 3.10 Homemovers 3.27 0.00 comparison is the absolute 2.90 change in the multiple 2.70

2.50 Homeowner Apr-18 Jun-18 Aug-18 Oct-18 Dec-18 Feb-19 Apr-19 remortgage 2.72 -0.04

Latest (Apr-2019) Y-o-Y comparison

18.0 First-time buyers 17.2% 0.0% 17.5

Proportion of gross income 17.0 used to service capital and interest repayments. Year-on- 16.5 Percentage Homemovers 17.5% 0.0% Repayments as % of income year comparison is the absolute change in the 16.0 percentage 15.5

15.0 Homeowner Apr-18 Jun-18 Aug-18 Oct-18 Dec-18 Feb-19 Apr-19 remortgage 16.6% 0.1%

Latest Buy-to-let (Apr-2019) Y-o-Y comparison

20,000 House purchase 5,100 0.0% Number of new buy-to-let 15,000 mortgage loans for house Number of new loans purchase or remortgaging, 10,000

secured by a first charge on Number the property Number of new buy-to-let mortgage loans for house Number of new loans purchase or remortgaging, 10,000

secured by a first charge on Number the property 5,000 Remortgage 14,400 0.0% 0 Apr-18 Jun-18 Aug-18 Oct-18 Dec-18 Feb-19 Apr-19

Latest (Apr-2019) Y-o-Y comparison

3,000 House purchase £0.7bn 0.0% Value of new buy-to-let mortgage loans for house 2,000

Value of new lending purchase or remortgaging, millions £ secured by a first charge on 1,000 the property 0 Remortgage £2.3bn 0.0% Apr-18 Jun-18 Aug-18 Oct-18 Dec-18 Feb-19 Apr-19

Next update: 16 July 2019 Release date: 13 June 2019 Homeowner House Purchase Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18 Jan-19 Feb-19 Mar-19 Apr-19 Source table First-time 25,370 30,710 33,430 30,420 34,220 28,660 32,070 35,010 29,980 24,940 24,880 28,860 27,370 RL1 buyers Number of new loans Homemovers 23,920 29,870 32,270 31,680 36,750 28,550 32,750 35,210 29,090 25,180 23,730 25,340 25,450 RL2

First-time 4,162 5,090 5,579 5,186 5,829 4,833 5,322 5,763 5,011 4,128 4,063 4,712 4,619 RL1 buyers Value of new lending (£mn) Homemovers 5,113 6,344 6,980 7,074 8,191 6,309 7,202 7,551 6,308 5,519 5,069 5,522 5,633 RL2

First-time 77.2 77.9 76.8 77.6 77.6 77.0 77.2 77.5 76.5 76.9 77.0 76.2 78.0 RL1 buyers Mean loan to value Homemovers 66.7 66.9 67.0 66.2 66.5 66.5 66.2 66.1 66.8 67.0 66.6 67.1 67.9 RL2

First-time 163,961 165,695 166,804 170,480 170,351 168,532 165,845 164,646 167,157 165,481 163,313 163,297 168,808 RL1 buyers Mean loan size Homemovers 213,699 212,469 216,382 223,248 222,823 220,862 219,785 214,483 216,859 219,148 213,624 217,826 221,399 RL2

First-time 3.48 3.50 3.51 3.52 3.52 3.53 3.50 3.50 3.52 3.49 3.47 3.45 3.50 RL1 buyers Mean loan to income multiple Homemovers 3.27 3.28 3.30 3.29 3.28 3.30 3.29 3.27 3.31 3.28 3.27 3.28 3.27 RL2

First-time 17.2 17.3 17.4 17.6 17.5 17.4 17.4 17.3 17.2 17.3 17.2 16.9 17.2 RL1 buyers Repayments as % of income Homemovers 17.5 17.4 17.5 17.6 17.6 17.9 17.7 17.5 17.8 17.8 17.6 17.4 17.5 RL2

Homeowner Remortgaging Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18 Jan-19 Feb-19 Mar-19 Apr-19 Source table

Equity Withdrawn 18,860 17,900 15,640 21,950 18,850 16,740 24,170 17,990 16,190 21,700 18,260 16,860 18,920 RL5 Number of remortgages Simple refinance (no 20,400 16,530 20,100 23,090 18,190 17,690 26,190 21,540 16,900 25,920 18,300 15,060 19,140 RL5 money withdrawn)

Equity Withdrawn 3,593 3,271 2,841 4,178 3,479 3,123 4,596 3,212 2,991 4,173 3,336 3,020 3,475 RL5 Value of remortgages (£mn) Simple refinance (no 3,587 2,739 3,648 4,189 3,104 3,064 4,594 3,631 2,914 4,615 3,034 2,530 3,296 RL5 money withdrawn)

Homeowner 56.7 55.6 57.0 58.8 57.3 57.4 58.1 56.7 57.4 58.4 57.0 56.9 57.2 RL4 Mean loan to value remortgage

Homeowner 182,897 174,592 181,554 185,757 177,778 179,734 182,508 173,088 178,400 184,535 174,188 173,837 177,882 RL4 Mean loan size remortgage

Homeowner 2.76 2.70 2.77 2.84 2.76 2.77 2.81 2.73 2.76 2.80 2.74 2.71 2.72 RL4 Mean loan to income multiple remortgage

Mean repayments as % of Homeowner 16.5 16.6 16.7 16.6 16.5 16.6 16.6 16.6 16.4 16.5 16.4 16.5 16.6 RL4 income remortgage

Buy-to-let Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18 Jan-19 Feb-19 Mar-19 Apr-19 Source table

House purchase 5,100 5,500 5,500 5,500 6,100 5,200 6,200 6,100 5,100 5,400 4,800 5,000 5,100 MM17 Number of new loans Remortgage 14,400 14,700 12,600 14,800 13,900 12,300 15,700 15,000 12,300 15,600 14,400 13,200 14,400 MM17

House purchase 700 700 800 800 800 700 800 800 700 700 600 700 700 MM17 Value of new lending (£mn) Remortgage 2,300 2,300 2,000 2,400 2,300 2,000 2,500 2,400 2,000 2,500 2,300 2,100 2,300 MM17

UK Finance publishes aggregate information on mortgages based on data supplied by our members, and grossed up to estimate total market size.

Remortgage figures shown in this release include refinancing with the same lender, in those cases where a new mortgage contract is created. For this reason these figures will generally exceed those published by the Bank of England, whose remortgage data exclude such internal refinancing transactions.

Source data tables are available to UK Finance members or data associates from www.cml.org.uk/industry-data/industry-data-tables/. For information or enquiries, please contact [email protected]

For media enquiries, journalists should contact [email protected]

Next update: 16 July 2019