Gross mortgage lending for April 2019 stands at £20.3bn

According to the latest Household Finance Update from UK Finance, Gross mortgage lending across the residential market in April 2019 was £20.3 billion, 1.4 per cent lower than the same month in 2018.

  • In April 2019, the number of mortgages approved by the main high street banks was 5.4 per cent higher than the same month in 2018
  • Approvals for home purchase were 8.6 per cent higher, remortgage approvals were 2.2 per cent higher and approvals for other secured borrowing were 0.8 per cent higher

THE ECONOMY

  • The Office of National Statistics reported that the Consumer Prices Index including owner occupiers’ housing costs (CPIH) 12-month inflation rate was 2.0% in April 2019, up from 1.8% in March 2019
  • The Consumer Prices Index (CPI) 12-month rate was1% in April 2019, up from 1.9% in March 2019.

HOUSING

Uncertainty continues to dampen the housing market according to Nationwide figures

  • Annual house price growth remained subdued at 0.9% in April
  • Prices rose 0.4% month-on-month, after taking account of seasonal factors

Robert Gardner, Nationwide’s Chief Economist commented:

“While the ongoing economic uncertainties have clearly been weighing on consumer sentiment, this hasn’t prevented further steady gains in the number of first time buyers entering the housing market in recent quarters’

Henry Knight, Managing Director of Springtide Capital commented:

‘Buyer confidence remains relatively low, a likely consequence of the continued Brexit-related uncertainty and the current political environment. On a positive note there has been a modest shift in the balance of supply and demand in favour of buyers over the last several months’

Bank of England Statistics for April 2019

  • Net mortgage lending was £4.3 billion in April, slightly higher than the average of £3.8 billion seen over the previous six months
  • Net mortgage borrowing by households was strong for the second month in a row, relative to the recent past, in April at £4.3 billion. Over the previous six months it averaged £3.8 billion. The annual growth rate of mortgage lending remains unchanged at 3.3%, the level it has been at since August 2018
  • The number of mortgage approvals for house purchase, a leading indicator of mortgage lending, ticked up in April to around 66,300. This was close to the average of the past two years and reversed the fall seen in March. The number of approvals for remortgaging was broadly unchanged, at around 49,400

Lending Trends

  • According to UK Finance, there were 27,370 new first-time buyer mortgages completed in April 2019, 7.9 per cent more than in the same month in 2018. There were 25,450 homemover mortgages completed in April 2019, 6.4 per cent more than in the same month a year earlier.
  • There were 18,920 new remortgages with additional borrowing in April 2019, 0.3 per cent more than in the same month in 2018. For these remortgages, the average amount taken out in April was £54,000. Additionally, 19,140 were simple pound-for-pound remortgages (with no additional borrowing), 6.2 per cent fewer than in April 2018. In total, there were 3.1 per cent less residential remortgages in April 2019 than in the same month a year earlier.
  • There were 5,100 new buy-to-let house purchase mortgages completed in April 2019, the same as this time last year. There were 14,400 remortgages in the buy-to-let sector, also the same as this time last year.

Sources:

https://www.ukfinance.org.uk/data-and-research/data/household-finance/household-lending-and-deposits

https://www.ons.gov.uk/economy/inflationandpriceindices/bulletins/consumerpriceinflation/april2019

https://www.nationwide.co.uk/-/media/MainSite/documents/about/house-price-index/2019/Apr_2019.pdf

https://www.bankofengland.co.uk/statistics/money-and-credit/2019/april-2019

https://www.ukfinance.org.uk/data-and-research/data/mortgages/lending-trends