London Sees Rise In Residential Mortgage Lending
According to data produced by the recently established trade association by the name of UK Finance, London saw an increase of 11% in the amount advanced by residential mortgage lenders in the second quarter of 2017 when compared with the first quarter of this year for the purchase of homes. Some £6.1 billion was advanced in this respect.
The above lending total related to some 18,000 mortgages with this being a rise of 6% when compared with the second quarter of 2017. We are sure that you will agree this is excellent news and let us hope that it continues.
However, it is interesting to note that remortgage business saw a drop when comparing the first two quarters of 2017. The fall was 10% with some £3.9 billion advanced. The number of advances totalled 12,800 with this being a fall of 12% when comparing both quarters.
An interesting statistic relates to first time buyers. In the UK, the average amount borrowed by such applicants was £137,700 yet in London the figure was considerably more at £268,100. This is obviously not a surprise as, on average, properties are more expensive in London than in most other places in the UK. In London, first time buyers borrowed an average of just over 4 x income whereas in the rest of the UK the average was just over 3.5 x income. Again, this is perhaps not surprising.
It will be very interesting to see what happens throughout the remainder of 2017 and beyond with regard to residential mortgage lending. There are so many factors that impact upon the housing market. Obviously, we need an active first time buyers market to help the rest of the market thrive.
We trust that the above has been of interest. Here at Commercial Mortgage Link, we will continue to keep our readers up to date with similar interesting statistics about the residential mortgage market.