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First-time buyers in Wales borrowed £480 million in fourth quarter of 2016 according to CML figures

First-time buyers in Wales borrowed £480 million in the fourth quarter of 2016 according to the latest figures from the Council of Mortgage Lenders (CML).

Lending to those taking their first step onto the property ladder was up 7% on the third quarter and 14% on the fourth quarter last year. This totalled 4,200 loans, up 8% quarter-on-quarter and 14% year-on-year. 

First-time buyers typically borrowed £107,400 (compared to £135,000 in the UK overall), down from £108,300. The average age of borrowers was 29 years old and the average household income was £33,400 (compared to £40,200 in the UK overall), down from £34,100. The typical income multiple in Wales of 3.29 (unchanged from the previous quarter) also compared favourably to the UK average of 3.56.

Home buyers borrowed £1.1bn for house purchase in the final quarter of last year, up 5% quarter-on-quarter and year-on-year. They took out 8,200 loans, up 5% compared to the previous quarter and 2% on the fourth quarter 2015.

During the fourth quarter of 2016 home movers borrowed £590 million, up 4% quarter-on-quarter but down 3% compared to a year ago. This totalled 4,000 loans, up 3% quarter-on-quarter but down 7% compared to the same quarter in 2015.

Home movers typically borrowed £134,600 (compared to £172,500 in the UK overall), up on £131,200 the previous quarter. The average age of borrowers was 40 and the average household income of a home mover was £47,000 (compared to £54,900 in the UK overall), up from £46,100. This meant the typical home mover income multiple in Wales was 2.97, compared to 2.93 the previous quarter and the UK average of 3.29.

Remortgage activity totalled £470 million down 2% on the third quarter but up 9% on the same quarter last year. This came to 4,200 loans, unchanged quarter-on-quarter but up 11% compared to a year ago.

 

Across 2016 as a whole first-time buyers borrowed £1.7bn, up 17% on the previous year. This totalled 14,700 loans, up 11% on 2015. 

Home buyers borrowed £3.9bn for house purchase, up 11% on 2015. They took out 29,700 loans, up 7% compared to the year before.

Home movers borrowed £2.2bn, totalling 14,900 loans, up 7% by value and 2% by volume on 2015.

Remortgage activity totalled £1.8bn, up 14% on 2015. This came to 16,200 loans, up 12% in 2015.

Julie Ann Haines, CML Cymru chair, said: “More people took out mortgages to buy homes in Wales in 2016 than in any year since 2007. It is particularly notable that first-time buyers accounted for a greater share of lending than in any year since 1999, and affordability in Wales compares positively with the UK as a whole.”

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