Guest wrongmove Posted February 15, 2006 Share Posted February 15, 2006 CML publishes data from the new regulated mortgage survey Some 'highlights': "In the fourth quarter of 2005, the survey shows 46% of all lending (£37.6 billion) was for house purchase, while 42% (£34.1 billion) was for remortgaging" "First-time buyers (FTBs) accounted for 38% (108,500) of house purchase loans in the fourth quarter of 2005 - significantly higher than the old SML estimate. We believe RMS data is more reliable than the SML and does not therefore show a actual shift in the number of FTBs. Movers account for 62% (177,100) of loans in the same period. " "FTBs borrowed a median average of 90% of the value of their property, while movers borrowed an average of 72% in the fourth quarter of 2005." "The popularity of fixed-rate mortgages appears to have increased dramatically. Fixed-rate loans accounted for 76% of all lending in the fourth quarter of 2005, up from 68% in the third quarter and 56% in the second quarter." Quote Link to comment Share on other sites More sharing options...
othello Posted February 15, 2006 Share Posted February 15, 2006 "First-time buyers (FTBs) accounted for 38% (108,500) of house purchase loans in the fourth quarter of 2005 - significantly higher than the old SML estimate. I thought FTBs were down to 7% of buyers. How does this stack up??? Quote Link to comment Share on other sites More sharing options...
Warwick-Watcher Posted February 15, 2006 Share Posted February 15, 2006 The staggering thing to me is the rapid growth in spreadsheet ML1 of the total amount of borrowing per quarter. In 2001 it was about £20bn a quarter and last year it was 3-4 times that much - good thing salaries have kept pace eh? Quote Link to comment Share on other sites More sharing options...
Guest wrongmove Posted February 15, 2006 Share Posted February 15, 2006 I thought FTBs were down to 7% of buyers. How does this stack up??? What was your source for this number ? Was it a reliable source ? Or did you just like the number ? Quote Link to comment Share on other sites More sharing options...
OnlyMe Posted February 15, 2006 Share Posted February 15, 2006 (edited) I thought FTBs were down to 7% of buyers. How does this stack up??? All sorts of people count as FTB's, as far as I'm aware the CML and others define FTB's as people who don't already have a house/mortgage. Al so there have been some BTL'ers who has gone for multiple FTB mortgages to get the best rates - naughty, naughty. Then you have the factor that all people requiring mortgages go through the mortgage route - another discrepancy between the NAEA stats and the lender's stats - the EA's will be sellling to cash buyers as well as people getting mortgages. Also, anndthis could be the biggie the builders have been building shedloads of small properties - up 10's% YOY, FTB fodder, hence more of these small places sold to FTB's outside of the EA chain, direct from the builders with the builders doing the sales direct and poiting to a suitable broker. It is the NAEA figures that provide the incredibly low FTB numbers (7/8%). It is also the EA's that have to deal with chains, at these levels it is remarkable that any chains get compelted at all. Edited February 15, 2006 by OnlyMe Quote Link to comment Share on other sites More sharing options...
Take me to the cleaners Posted February 15, 2006 Share Posted February 15, 2006 (edited) So the median ftb is aged 29; taking out a 90% mortgage; borrowing £94,037 and earns £30,531. What sort of houses are these reasonably high earning FTBers buying? FFS. I forgot to add they all have a £10 grand deposit as well. Edited February 15, 2006 by Take me to the cleaners Quote Link to comment Share on other sites More sharing options...
FreeFall Posted February 15, 2006 Share Posted February 15, 2006 So the median ftb is aged 29; taking out a 90% mortgage; borrowing £94,037 and earns £30,531. What sort of houses are these reasonably high earning FTBers buying? FFS. Wouldn't even get you a studio flat where I live, and 30 grand is way more than the average salary around here... Quote Link to comment Share on other sites More sharing options...
Take me to the cleaners Posted February 15, 2006 Share Posted February 15, 2006 Wouldn't even get you a studio flat where I live, and 30 grand is way more than the average salary around here... Its a pity they don't produce a geographical location map of where all the FTB purchases are happening. Quote Link to comment Share on other sites More sharing options...
SHERWICK Posted February 15, 2006 Share Posted February 15, 2006 I thought FTBs were down to 7% of buyers. How does this stack up??? Simple. FTBs (7% of all buyers) took out 38% of all loans. The other 93% of buyers and MEWers took out 62% of all loans. Correct me if I am wrong... I thought FTBs were down to 7% of buyers. How does this stack up??? Simple. FTBs (7% of all buyers) took out 38% of all loans. The other 93% of buyers and MEWers took out 62% of all loans. Correct me if I am wrong... Quote Link to comment Share on other sites More sharing options...
frugalista Posted February 15, 2006 Share Posted February 15, 2006 This is complicated. You have x1 = no. of FTBs who buy with a mortgage using an EA x2 = no. of FTBs who buy with cash using an EA x3 = no. of FTBs who buy with a mortgage not using an EA x4 = no. of FTBs who buy with cash not using an EA x5 = no. of non-FTB movers who buy with a mortgage using an EA x6 = no. of non-FTB movers who buy with cash using an EA x7 = no. of non-FTB movers who buy with a mortgage not using an EA x8 = no. of non-FTB movers who buy with cash not using an EA x9 = no. of MEWers The figure of 7% from the NAEA means (x1 + x2) / (x1 + x2 + x5 + x6) = 0.07 The figure of 38% from the CML means (x1 + x3) / (x1 + x3 + x5 + x7 + x9) = 0.38 frugalista Quote Link to comment Share on other sites More sharing options...
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