Mortgage Statistics Q2 2013

[FreeTrader]

The Bank of England this morning released Mortgage Lenders and Administrators statistics for Q2 2013. These statistics used to be published by the FSA, but they're now jointly published by the PRA and FCA.

Main release document: http://www.bankofengland.co.uk/pra/Documents/regulatorydata/mlar/2013q2/mlar2013q2statisticalrelease.pdf

Link to page with detailed statistics: http://www.bankofengland.co.uk/pra/Pages/regulatorydata/mlar/2013/q2publication.aspx

[FreeTrader]

One thing to note is that the split between single and joint income mortgages is still close to 50:50.

A lot of people incorrectly make the assumption that the vast majority of mortgages these days will be joint income, and that the proportion of joint income loans has been rising over time. Certainly this hasn't been the case with the MLAR stats since their inception.

[FreeTrader]

75.3% of mortgages in Q2 2013 were taken out at fixed rates, up from 56.4% a year earlier and above the proportion at the peak of the market in 2007 (67.5%).

Unfortunately we don't get a split of the length of fixes, but the chart below shows the situation in the past, with the majority of fixes for just two years:

[19 year mortgage 8itch]

75.3% of mortgages in Q2 2013 were taken out at fixed rates, up from 56.4% a year earlier and above the proportion at the peak of the market in 2007 (67.5%).

Unfortunately we don't get a split of the length of fixes, but the chart below shows the situation in the past, with the majority of fixes for just two years:

Anecdote alert but mortgage advisors pushing 2 year fixes as lowest rates so this is unsurprising to me.

On the FTB LTV front, Neal Hudson tweeted a chart showing the CML median loan at a 90-95% trend unlike the ONS mean which is v. Similar to your chart.

Seem industry figures suit Ozzie's agenda not govt data.

[FreeTrader]

On the FTB LTV front, Neal Hudson tweeted a chart showing the CML median loan at a 90-95% trend unlike the ONS mean which is v. Similar to your chart.

Seem industry figures suit Ozzie's agenda not govt data.

Thanks for that. I'll post it on the other thread.

[Sancho Panza]

Anecdote alert but mortgage advisors pushing 2 year fixes as lowest rates so this is unsurprising to me.

On the FTB LTV front, Neal Hudson tweeted a chart showing the CML median loan at a 90-95% trend unlike the ONS mean which is v. Similar to your chart.

Seem industry figures suit Ozzie's agenda not govt data.

It makes a lot of sense for intermediaries to push 2 years FRV's.

I'm surprised at the strength of demand for single income mortgages.

[FreeTrader]

It makes a lot of sense for intermediaries to push 2 years FRV's.

I'm surprised at the strength of demand for single income mortgages.

I managed to find some data from a 2005 CML report this morning that went further back than the MLAR.

In 1994 49.5% of mortgages were granted on a single income basis.

So this statistic is little different today than it was twenty years ago, although this is partially due to the growth of BTL (BTL mortgages are predominantly single income).

[Sancho Panza]

I managed to find some data from a 2005 CML report this morning that went further back than the MLAR.

In 1994 49.5% of mortgages were granted on a single income basis.

So this statistic is little different today than it was twenty years ago, although this is partially due to the growth of BTL (BTL mortgages are predominantly single income).

I was wondering how that was categorized.I don't suppose you know the proportion of buy to let mortgages in 1994?

Also surprising is the strength of lending a 4x+ single income or could this be a natural follow on from the strength of BTL lending?

http://www.bankofengland.co.uk/pra/Documents/regulatorydata/mlar/2013q2/mlar2013q2statisticalrelease.pdf

'The proportion of lending which was for buy to let (BTL) remained unchanged at 12.1% in Q2 2013. However, there was a large increase in value terms over the past year – up from £3.9 billion advanced in Q2 2012 to £5.0 billion in Q2 2013, an increase of 29%.'

'The proportion of gross advances at a high LTV (i.e. over 90%) increased from 2.1% in Q1 2013 to 2.5% in Q2 2013, the highest since Q2 2009. The proportion of gross advances to high single income multiple borrowers (i.e. more than 4.00x) increased slightly in Q2 2013 by 0.1 percentage points to 10.2% compared with Q1 2013.'

[FreeTrader]

I was wondering how that was categorized.I don't suppose you know the proportion of buy to let mortgages in 1994?

Also surprising is the strength of lending a 4x+ single income or could this be a natural follow on from the strength of BTL lending?

http://www.bankofengland.co.uk/pra/Documents/regulatorydata/mlar/2013q2/mlar2013q2statisticalrelease.pdf

'The proportion of lending which was for buy to let (BTL) remained unchanged at 12.1% in Q2 2013. However, there was a large increase in value terms over the past year – up from £3.9 billion advanced in Q2 2012 to £5.0 billion in Q2 2013, an increase of 29%.'

'The proportion of gross advances at a high LTV (i.e. over 90%) increased from 2.1% in Q1 2013 to 2.5% in Q2 2013, the highest since Q2 2009. The proportion of gross advances to high single income multiple borrowers (i.e. more than 4.00x) increased slightly in Q2 2013 by 0.1 percentage points to 10.2% compared with Q1 2013.'

Sorry, I don't know the BTL proportion in 1994.

If you go to the second link I posted in the OP, you'll find the detail tables (in both PDF and XLS format) that separate regulated from non-regulated mortgage lending.

If you want data that goes further back, it's still available on the FSA website at the link below:

http://www.fsa.gov.uk/library/other_publications/statistics/future

[Bloo Loo]

single income may not mean what it says on the tin...could these be single "name on the deed" mortgages, while the second income, not involved in the mortgage directly, is not recorded, but is included in the ability to repay calculations.

This would suit many business people where the property is in the spouses name...