Category Archives: Mortgages

A quarter of landlords would consider using a pensions lump sum to invest in property

The latest BM Solutions buy to let quarterly index shows 1 in 4 (26%) of landlords would consider using a lump sum from their pension to invest in property, with a further 24% undecided.

The quarterly BM Solutions / BDRC Continental Landlord Panel revealed that while 77% of landlords view their property portfolio as part of their pension provision, 38% are not planning to withdraw a lump sum from their pension to invest in property or don’t have enough in their pension to do so. This rises to 48% for landlords with larger portfolios (20+ properties). Continue reading

Home lending rebounds in February for smaller-deposit borrowers

Borrowers with smaller deposits accounted for the largest portion of house purchase lending in five months in February, according to the latest Mortgage Monitor from e.surv.

Higher LTV house purchase approvals (loans to borrowers with a deposit of up to 15% of the total value of their property) made up 16.9% of house purchase approvals in February, a significant proportional increase from 15.3% in January and just 13.9% in December. Continue reading

2014 repossessions down 26%, says CML

The number of repossessions fell to 21,000 in 2014 – 26% fewer than the 28,900 in 2013, and the lowest number since 2006, according to latest data from the Council of Mortgage Lenders. At 0.19%, the repossession rate was also lower in 2014 than at any time since 2006.

Out of the 21,000 total number of repossessions, 16,100 were on owner-occupied properties, and 4,900 were on buy-to-let properties. Continue reading

Gross lending remains steady in December

The Council of Mortgage Lenders estimates that gross mortgage lending reached £16.5 billion in December. This remained unchanged month-on-month compared to November but down 1% compared to December 2013.

This means the gross lending estimate for the fourth quarter of 2014 is £51.6 billion, down 8% on quarter three but up 1% on the fourth quarter of 2013. Overall, for 2014 the gross lending estimate is £205.6 billion, up 17% on 2013’s £176 billion gross lending figure. Continue reading

Higher LTV loans ebb away in November

Lending to higher LTV borrowers fell 12% year-on-year, according to the latest Mortgage Monitor from e.surv, the UK’s largest chartered surveyor.

November had the smallest number of higher LTV borrowers since October 2013. There were 8,250 house purchase approvals to borrowers with deposits worth 15% or less of their property’s value in November 2014 – 12% lower than 9,379 a year ago. Continue reading

6% more first-time buyers in London

New CML data on the characteristics of lending in Greater London in the third quarter of 2014 show the market grew in both house purchase and remortgage activity compared to the previous quarter.

First-time buyer loans totalled 13,300 in the third quarter in London – 8% up on the previous quarter, and 6% up on Q3 2013. First-time buyers in the period borrowed £3.3 billion – up 11% on the previous quarter and 16% on Q3 2013.

There were 10,600 home-mover loans in the third quarter, up 16% on the previous quarter but 1% down on Q3 2013. Total value of these loans was £3.7 billion, up 18% on the second quarter and 10% on the third quarter 2013.

Remortgage lending in the quarter showed growth in London compared to the previous quarter but down in volume slightly compared to the third quarter last year.

Paul Smee, CML director general, commented:

“London lending is currently driven by both home-mover and first-time buyer growth so borrowers can still find homes in London at their affordability level. Despite the growth of lending to its highest level for seven years, these figures have remained pretty consistent for the past twelve months which suggests a steady market.”

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