According to the Council of Mortgage Lender (CML), mortgage costs for first-time buyers and home movers reached record low points in September. In this month, first-time buyers paid an average of 17.8% of household income to interest rates and service capital – down 0.2% from August and 0.5% year on year. Now, those moving home pay 17.7% of their household income to service mortgage costs – down 0.2% from August and 0.4% year on September 2015. This party reflects the re-pricing of mortgages following August’s base rate cut. In turn, this should enforce a strong appeal for people to become homeowners towards the end of the year. The average loan size for first-time buyers fell to £133,000 in September from £136,400 in August, with the average household income also having decreased slightly from £41,000 in August to £40,200 in September. This resulted in the income multiple being slightly down from 3.56 to 3.53. The average amount borrowed by home movers in the UK also decreased to £171,000 in September from £175,000 in August, while the average home mover household income also decreased to £55,100 from £55,400. The income multiple for the average home mover went from 3.27 to 3.26 month on month. However, while there was a fall in house purchase lending in September compared to August, this is the highest volume of loans and most amount borrowed in the month of September since September 2007. This was mirrored in first-time buyer trends as this was the highest volume of loans in the month of September since September 2006. First-time buyers borrowed £4.9bn, down 4% on August but up 14 per cent on September last year. This equated to 31,500 loans, down 1% month-on-month but up 13% year on year. Remortgaging hit £5.5bn in September, down 7% on August but up 8% compared to last September. This represents 31,500 loans, down 10% month-on-month but up 2% year-on-year. It appears that borrowers are beginning to regain control of the housing market and make it work for them as they continue to take advantage of the record low base rate. For mortgage advice and to find the right solution for you, please email us or call +44 (0) 20 3858 0313.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT
Max Adams Ltd is an Appointed Representative of HL Partnership Limited, which is authorised and regulated by the Financial Conduct Authority. The Financial Conduct Authority does not regulate some forms of buy to let, offshore mortgages, commercial loans or bridging loans. Your home may be repossessed if you do not keep up repayments on your mortgage. We do not charge a fee for residential mortgage advice. We charge an administrative fee for processing each of your mortgage contracts; our fees only apply when you decide to go ahead with an application. Standard residential and buy to let high street mortgages. The highest fee is up to £999, payable on application.
Private Bank and specialist mortgages The highest fee of 1% of the mortgage loan size applies of which £999 is payable on application with the balance payable on completion. Max Adams Ltd is a company registered in England and Wales with company number 7952988. Registered office: Brick House, 150a Station Road Woburn Sands, Milton Keynes, England, MK17 8SG. The information contained within this website is subject to the UK regulatory regime and is therefore targeted at consumers based in the UK. You voluntarily choose to provide personal details to us via this website. Personal information will be treated as confidential by us and held in accordance with the Data Protection Act 1998. You agree that such personal information may be used to provide you with details of services and products in writing, by email or by telephone.