Regional lending figures revealed
Lending activity is up across the UK, as the latest figures from the Council of Mortgage Lenders show robust growth in Northern Ireland, Wales and Scotland.
The Council of Mortgage lenders says that homeowner house purchase lending in Northern Ireland increased to 3,600 loans – up 16% on the second quarter, and 6% compared to last year.
First-time buyers and home movers saw similar trends to each other with both increasing quarter-on-quarter and year-on-year.
The number of loans for remortgage remained the same quarter-on-quarter at 1,700 loans, but up 55% in volume compared to the third quarter 2014.
Derek Wilson, CML chair for Northern Ireland, said: “Affordability conditions are relatively good in Northern Ireland compared to the UK overall, so there is potential for further growth to close out the year. Remortgage activity is coming from a low base after activity declined greatly post-recession, and is still only a fifth of the level it was at its peak in 2007, but four quarters in a row of growth is positive given how static it had been the past few years.”
First-time buyers took out 3,700 loans in Wales – up 16% on the previous quarter and last year. First-time buyers in the period borrowed a massive £410m – up 21% on the previous quarter and the same quarter last year.
There were 3,900 home-mover loans in the third quarter, up 8% on the previous quarter and 3% higher than in quarter three 2014.
Remortgage lending in the quarter in Wales grew quarter-on-quarter and year-on-year by volume and by value.
Julie-Ann Haines, CML chair for Wales, said: “House purchase and remortgage activity in Wales continued to show positive growth for the second quarter in a row, after a subdued start to the year. Affordability is better in Wales than for the UK overall. We would expect this upward trend to continue to close out the year given the competitive mortgage deals available as a result of interest rates remaining low coupled with Government schemes like Help to Buy Cymru assisting demand.”
There were 8,500 first-time buyer loans in Scotland – 4% up on the previous quarter and 16% up on the third quarter of 2014. First-time buyers in the period borrowed £920m – up 2% on the previous quarter.
At 10,000 loans, there were 12% more home-mover loans in the third quarter than the second, and 15% more than a year ago.
Remortgage lending went up in value quarter-on-quarter and year-on-year.
Linda Docherty, CML chair for Scotland, commented: “The past two quarters have seen the highest level of borrowers purchasing their home in Scotland since 2007. Activity has remained robust over the past six months, with a surge in both first-time buyers and home movers, and with an economic climate of low interest rates, increased earnings and competitive mortgage offers we would expect this to continue as we head towards the New Year.”