Interesting Mortgage Data

The Council of Mortgage Lenders (CML) provides some interesting statistics about residential mortgages here in the UK for 2016. Below, we mention some of this data but full details can be found on the website of the above.

The Halifax is one of many financial institutions that provide residential mortgages
The Halifax is a huge residential mortgage lender

There are 11.1 million properties here in the UK that have mortgages on them with 83.3% being for home owners and 16.7% being for buy-to-let properties. Those mortgages total £245 billion with this being an increase of 11% when compared with 2015. First time buyers make up 22.78% of the above figure, remortgages make up for 28.33% and house movers account for 31.79%.

There were 94,100 mortgages that were in arrears by 2.5% or more of the amount of the mortgage and 7,700 properties had unfortunately to be repossessed by lenders last year.

The data for first time buyers looks interesting. In England (including London), first time buyers totalled 284,700, in Greater London there were 43,300 first time buyers, in Northern Ireland 8,000, in Scotland 31,400 and in Wales there were 14,700 first time buyers. The loan to income ratio for Greater London was 3.99, England (including London) 3.61, Scotland 3.01, Wales 3.28 and Northern Ireland the loan to income ration was 2.87. There was an increase of first time buyers in Wales of 11% when compared with 2015, in Northern Ireland an increase of 7%, in Scotland 5%, in England (including London) 9% and in Greater London there was a fall of 5% in the number of first time buyers in comparison to 2015.

It will be interesting to see if the Bank of England decides to put up interest rates in the coming months as this may have an impact on the housing market if mortgage lenders also decide to follow suit. It may result in an increasing number of people deciding that they want to move into or stay in the rented sector rather than buy their own homes. It may also encourage more borrowers to consider fixed rate mortgages .

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