House purchase lending down in London and Celtic countries
Wed 27 May 2015
By Lending for house purchase fell significantly across London and the Celtic countries, new figures from theCouncil of Mortgage Lenders show.
In the first quarter there were 17,300 loans for house purchase in London, down 16 per cent year-on-year. Byvalue these loans totalled 4.9bn, a fall of 11 per cent.
In Wales, there were 5,100 loans for house purchase in Q1, totalling 630m, which was down 9 per cent byvolume and 2 per cent by value.
The story was similar in Northern Ireland, where the number of loans for house purchase fell year-on-year by 11per cent to 2,400. By value, house purchase lending was down 4 per cent at 230m.
Scotland fared better but the number of loans for house purchase lending was still down 1 per cent, at 12,200.While the number of loans fell, the value of these loans increased 15 per cent year-on-year to 1.7bn.
Marsh & Parsons chief executive Peter Rollings says: The usual furious flow of mortgage lending was interruptedin the first three months of this year, as it calmed down from the heady heights of 2014, and the general electionloomed.
But cheaper mortgage rates are now making waves in the market, and with the wealth of products now available,we can expect this to ripple out into a stronger summer of lending.
As the Queens speech stamps a seal of approval on the new government, there is a new wind in the sails ofbuyers propelled by political certainty, greater choice of homes on the market, and incentives like reducedstamp duty and Help to Buy support schemes at the lower rungs of the ladder.
While house purchase lending was down in all regions, remortgage lending was up in London and NorthernIreland.
Some 10,800 loans were advanced for remortgage purposes in Q1, a rise of 2 per cent. At 2.9bn, remortgagelending by value was up 8 per cent.
In Northern Ireland, there were 1,200 loans for remortgaging in Q1, a rise of 9 per cent, while the value of these loans rose 20 per cent year-on-year to 120m.
Remortgage lending fell slightly year-on-year in Q1 in Wales and Scotland.
In Wales, there were 3,200 loans for remortgage purposes, worth 340m, which is fall of 6 per cent by volumeand 3 per cent by value.
In Scotland, there were 5,900 loans for remortgage purposes, worth 660m, which is fall of 3 per cent by volumeand 1 per cent by value.