Gross mortgage lending for October stands at 25.5bn

 

According to the latest Household Finance Update from UK Finance, gross mortgage lending for October 2018 was £25.5bn. This is 5.6% higher than a year earlier.

  • Approvals for house purchases were 3.6% higher, although the number of mortgage approvals was 4.1% lower than last October.
  • The Bank of England reported that the figure for mortgages approved for house purchase was 67,000 in the month of October, which is the highest figure since the start of the year.
  • Remortgage approvals were 13.5% lower, while approvals for other secured borrowing were also lower by 1.3%.
  • The figure for remortgage approvals stood at 49,000 for October.

 

Commenting on the data, Eric Leenders, Managing Director, Personal Finance at UK Finance, said:

“Overall mortgage lending grew in October, despite an uncertain economic environment, while house purchase mortgage approvals by the main high street banks were also up on the previous year”

Henry Knight, Managing Director of Springtide Capital commented:

“The market remained broadly stable in October and in the very near term we expect market trends to continue until the economic outlook becomes clearer and while the market continues to adjust to the implications around Brexit.’ 

 

October Buyer Statistics 

  • The average first-time buyer is 30 and has a gross household income of £42,000.
  • The average home mover is 39 and has a gross household income of £56,000.

 

Mortgage arrears remain at historic low in Q3 2018

 UK Finance’s Mortgage Arrears and Possessions Update for the third quarter of 2018 reveals that significantly fewer properties were taken into possession in the last quarter: 

  • 1,080 homeowner mortgaged properties were taken into possession in the third quarter of 2018, 19 per cent fewer than in the same quarter of the previous year.
  • 500 buy-to-let mortgaged properties were taken into possession in the third quarter of 2018, 17 per cent fewer than in the same quarter of the previous year.
  • There were 77,600 homeowner mortgages in arrears of 2.5 per cent or more of the outstanding balance in the third quarter of 2018, 5 per cent fewer than in the same quarter of the previous year.
  • There were 4,660 buy-to-let mortgages in arrears of 2.5 per cent or more of the outstanding balance in the third quarter of 2018, 1 per cent fewer than in the same quarter of the previous year. 

 

THE ECONOMY

The Office of National Statistics reported that the Consumer Prices Index including owner occupiers’ housing costs (CPIH) 12-month inflation rate was 2.2% in October 2018, unchanged from September 2018.

 

Sources:

https://www.ukfinance.org.uk/household-finance-update-october-2018/

https://www.ons.gov.uk/economy/inflationandpriceindices/bulletins/consumerpriceinflation/october2018

https://www.ukfinance.org.uk/mortgage-market-softens-following-period-of-strong-growth/

https://www.bankofengland.co.uk/statistics/money-and-credit/2018/october-2018

https://www.ukfinance.org.uk/mortgage-arrears-remain-at-historic-lows-in-q3-2018/