Posts with tag: gross mortgage lending

Lloyds is Biggest Lender with One Fifth of New Mortgages

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

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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.

Mortgage Lending to Hit £286.8bn by 2019

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

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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

Gross mortgage lending remains steady in May

Published On: June 18, 2015 at 11:01 am

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Latest reports from the Council of Mortgage Lenders has indicated that gross mortgage lending during May remained stable, both month-on-month and year-on-year.

Despite rising by 2% on April to total £16.2m, total lending was 3% down on the £16.8m recorded a year ago. However, forecasts from the Bank of England suggest that the market will improve over coming months, backing up the CML’s belief that a recovery is starting to take shape.

Stability

CML economist Mohammed Jamei feels that, ‘economic environment is one that should support increased activity in the near term, coupled with low mortgage rates. But while we expect these factors to support activity, there is a limited upside, driven mainly by affordability constraints.’[1]

Richard Sexton, director of e.surv chartered surveyors, noted, ‘the mortgage market has shown stability against all the odds. Last April saw the new MMR regulations come into play, whilst this April, we were anticipating the most uncertain election in a century. Against these headwinds, the lending recovery has been remarkably resilient.’ Sexton described the stability as, ‘encouraging,’ as he feels it signals a, ‘potentially sustainable long-term trend, rather than the volatile days of recent years.’[1]

Gross mortgage lending remains steady in May

Gross mortgage lending remains steady in May

The proportion of lending to borrowers with smaller deposits is holding steady, as banks continue to support first-time buyers. Wage rises are starting to look healthier, while the cost of living remains low, meaning household finances are starting to finally put on some muscle. The threat of mansion tax has lifted, and several housebuilding initiatives are underway. Any remaining caution left from the run up to the election is dissipating, and lenders are optimistic that the summer will see the market stretch its legs and get into its stride.’[3

[1] http://www.propertyreporter.co.uk/finance/may-lending-remained-st4ble.html

 

 

Building societies give largest share of new mortgages

Published On: June 1, 2015 at 10:27 am

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A new report has shown that British building societies were responsible for the largest share in new mortgage lending in the first quarter of 2015.

Lending 

An investigation from the Building Societies Association has found that building societies lent £12.7bn of gross new mortgages during this period. This represented 29% of total lending across the market.[1]

Additionally, the data shows that societies gave their approval to in excess of 91,000 mortgages in the first three months of this year, while net lending from all lenders topped £3bn.[2]

Paul Broadhead, head of mortgage policy at the Building Societies Association, pointed that lending had been strong and that without this contribution, total stock of mortgage loans would have dropped in the first period of the year. Broadhead said that, ‘societies hold a 20% share of mortgage balances but have had a much greater share of the flow of new lending for some time. In the first quarter they delivered 29% of all new mortgages.’[3]

Mr Broadhead believes that this is, ‘partly because of competitive products and partly due to the more personal approach they take to underwriting.’ He feels that, ‘the trend looks set to continue in the second quarter as around a third of mortgage approvals in the first quarter were from building societies.’[4]

HiRes

Landlord demand

The report from the Building Societies Association ties in with another report from Paragon Mortgages. Results from their Financial Advisor Confidence Tracking survey suggests that 91% of intermediaries see landlord demand as either stable or growing.[5]

John Heron, director of Paragon Mortgages, feels that, ‘There were no great movements in this quarter’s survey findings, what is evident though, is intermediaries are feeling optimistic about the buy to let market. Following the results of the general election, it will be interesting to see whether we see an increase in intermediaries’ case load as confidence increases in the wider housing market.[6]

 

[1] http://www.propertywire.com/news/europe/uk-mortgages-new-lending-2015060110571.html

 

Gross mortgage lending up 21% in March

Published On: April 23, 2015 at 12:18 pm

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Latest figures released from the Council of Mortgage Lenders (CML) have showed that mortgage lending rose at a substantial rate during March.

The statistics show that gross mortgage lending during March reached £16.5bn, a 21% increase from the £13.6bn recorded in February. As a result, lending in the first quarter of this year totalled £44.9bn.[1]

Despite this significant rise, gross mortgage lending was actually down 12% on the last three months of 2014, and down by 3% on the same period last year.[2]

Stable

Chief Economist of the CML Bob Pannell, feels that the figures show stability. Pannell said that, ‘the underlying picture is stabilising. Sentiment and activity are showing early signs of improvement and should be further supported by the effects of stamp duty reform.’ He said that the CML, ‘expect to see lending strengthen over the next few months, albeit from a relatively sluggish start in 2015.’[3]

Brian Murphy, Head of Lending at the Mortgage Advice Bureau, agreed with Pannell about the positivity of the statistics. Murphy said that the data showed that, ‘housing activity is back on track.’ He went on to say that, ‘the fall in February was not unexpected given the seasonal slowdown but it is encouraging to see that lending has risen 21% over the month.’[4]

Murphy also rebuffed the notion that the upcoming election had caused market activity to slow, saying that, ‘there is still appetite in the market for lending and consumer demand has also held strong.’[5]

Optimism

Additional figures released by the HMRC also gave cause for optimism. Mr Murphy pointed out that, ‘housing transactions rose above 100,000 for the first time in four months in March,’ and went on to say that, ‘this should have a knock-on effect on mortgage completions, lending to further growth.’ He warned however that, ‘with housebuilding levels still trailing behind consumer demand, long-term growth could be stunted if this imbalance is not addressed.’[6]

Gross mortgage lending up 21% in March

Gross mortgage lending up 21% in March

 

Peter Rollings, CEO of Marsh and Parsons, said that the lending figures showed a market, ‘emerging into a spring full of promise.’ He believes that the, ‘significant increase from February,’ is welcome, but it is, ‘the year-on-year figure that is even more encouraging when you consider how strongly the property market began in 2014.’[7

Rollings also thinks that after the forthcoming election, ‘buyers and seller will soon have a more concrete idea of what the future holds for the property market and will be able to act more decisively.’ When this is married up with features such as improving mortgage rates and the traditionally strong spring to summer period, Rollings suggests that, ‘the outlook is rosy,’ for the property market.[8]

 

[1-8] http://www.propertyreporter.co.uk/hero/gross-mortgage-lending-hits-165bn-in-march.html