13th January 2016
New data has revealed some positive results for the UK mortgage sector in the latter part of the year, with reports from the Council of Mortgage Lenders highlighting both a downturn in mortgage arrears and a rise in advances for the third quarter of the year.
Overall, first time buyers witnessed growth in both month on month and year on year lending volumes in September, while remortgage activity also delivered positive gains in each of these metrics.
In total, first time buyer mortgage advances reached £4.3 billion in the three months to the end of September. At the same time, remortgage activity stood at £5.1 billion. This relates to annual growth of ten per cent and 19 per cent respectively for each of the markets.
It was not all positive news for the sector though, as while home mover mortgage volumes were up by more than 15 per cent from September 2014 to September 2015 year, the market segment also registered a fall of four per cent from August this year. The nation`s mortgage market registered a slow start to the year in terms of pushing for growth, but CML director general Paul Smee now firmly believes the sector has found its feet and is on an upwards trajectory heading into the final three months of the year.
Indeed, it is not just in the private mortgage segment that this positivity abounds at present, but in buy to let as well. The CML`s latest market update shows how the volume and value of buy to let house purchases mortgages have grown by more than one third in the last 12 months, while remortgaging activity is up by almost two thirds by an impressive 62 per cent.
Households up and down the country can also rest a little easier, safe in the knowledge that the likelihood of individuals falling into arrears on their borrowings continues to decrease. Less than one per cent of all mortgage borrowers are now in a state of arrears with their lender, with the CML highlighting a downward trend in the number of cases of arrears that stretches as far back as mid 2009 and the start of the UK`s economic recovery.
At the peak of the global banking crisis, more than 13,000 cases of potential repossession were seen among UK borrowers. However, the latest update from the CML shows that this figure is now less than two and a half thousand.
Furthermore, the last 12 months have been an extremely positive period for UK mortgage holders, with the number of recorded cases of arrears reducing by around 50 per cent since September last year.
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