Mortgage Broker Manchester

Research from LSL Property Services and research consultancy Acadametrics shows that house prices hit record levels in July, beating the previous best in 2008.
The England & Wales House Price Index rose 0.3% in July from the previous month with the index reaching 237.2 from 236.4 in June. The average house price across England & Wales hit £232,969; an increase of £5,796 in the last 12 months.
The report provides further confirmation of a strengthening housing market just a week after Nationwide’s own House Price Index showed a 3.9% annual rise in prices. LSL and Acadametrics’ research also highlights that 45% of all house purchases in the last year were first-time buyer purchases.
LSL commercial director David Brown attributes significant credit to government schemes such as Funding for Lending and Help to Buy, as he says: “Both schemes have helped banks boost first-time buyer lending by providing them with credit to offer more loans to new buyers and reduce rates on house purchase mortgages. Funding is more accessible for lenders, while banks are more confident than they were six months ago – which bodes well for the future.”
Brown points out that the continued uptrend in house prices is still be powered by strong performance in London where a 7.1% increase in prices is faster than anywhere else in the country.

The number of mortgage products available last month exceeded 10,000 for the first time in nearly five years, according to brokerage the Mortgage Advice Bureau.
July’s average of 10,262 products is 33% higher than the 7,736 on offer last July, 97% up on the 5,208 products on offer three years ago and a massive 198% up on the 3,442 products on offer in July 2009.
MAB’s research also shows the average two-year fixed rate has fallen 1.05% to 3.63% in the year to July, while the average five-year fixed rate has fallen by 1.01% to 3.86%. This is widely believed to be as a result of the Funding for Lending scheme, which provides lenders with cheap funding in exchange for maintaining or increasing their net lending levels.
The typical homebuyer borrowed £159,391 in July, up 6% on £150,494 in January this year, while the typical homebuyer income increased 3% since January from £39,570 to £40,792. The average loan-to-value ratio of homebuyers increased from 3.8 in January to 3.91 in July.
The average borrowing for remortgage deals increased by 7% in the last year from £150,389 in July 2012 to £160,809 in July this year.
The typical equity put forward for remortgage deals fell 16% over the year, from £131,290 to £110,659 in July this year, while the average LTV rose by 3.9% to 60.6% in the twelve months to July 2013.

Lending to first-time buyers in June was up 30% year-on-year and the Council of Mortgage Lenders says the second quarter of this year was the highest quarterly total for lending since 2007. The trade body’s data shows that 25,300 loans were advanced to first-time buyers in June a 30% increase on the 19,400 loans advanced in June last year. And overall for the second quarter some 68,200 first-time buyers purchased their first home, the highest since 2007.
First-time buyers continued to increase the amount they borrowed – with an average loan size of £117,000 in June up from £112,500 in May. As a result of this there has been a stronger growth in the value of loans advanced to first-time buyers which totalled £3.5bn – an increase of  9% in value compared to May and 40% on June last year.
The CML says that this increase in first-time buyer, along with growth in lending to home movers, has resulted in a jump in total house purchase lending.
A total of 151,600 loans was advanced for house purchase in the second quarter, up by 30% compared to the first quarter of 2013 and 17% compared to the same period last year. In June, £8.5bn worth of loans was advanced which was an increase of 16% compared to June last year.
Remortgage lending dipped back in June compared to May, although continues to trend above levels earlier this year. While it was up 13% year-on-year, the number of remortgages fell by 13.6% from May this year.
CML director general Paul Smee, director general of the Council of Mortgage Lenders, says first-time buyers have become a strong driver in the growth of mortgage lending this year proving that market conditions are favourable for them.  He says: “With increased interest in home buyers’ ability to cope with the eventual rise of interest rates, it is particularly reassuring to see borrowers choosing to fix their payments and for longer in record numbers.”

First-time buyers paid 4.1% more for their properties in May 2013 compared to the previous year against a backdrop of rising house prices, the Office for National Statistics has revealed.  Existing owners also paid on average 2.5% more for new homes than they did in May 2012. Across the UK house prices rose by 2.9% in the twelve months to May.
LSL Property Services commercial director David Brown said: “Strong price growth in May is another encouraging sign for the economy and the housing market in general. But that’s not the whole picture. Equally, it’s tougher news for anyone struggling to raise their first deposit. House prices are accelerating away from first-time buyers 60% faster than they’re lifting the finances of existing owners. First-time buyers are still facing a three-pronged attack from encroaching inflation, weak wage growth, and paltry savings rates.”
May saw house prices rise across the UK, with year-on-year growth of 3.1% in England, 0.8% in Scotland, 0.6% in Wales and 1.9% in Northern Ireland. This was the first time Northern Ireland experienced a year-on-year house price rise since February 2008. Annual house price increases in England were driven by a 6.6% rise in London and a 2.7% increase in both the North West and West Midlands.
Garrington property search consultants managing director Jonathan Hopper said the housing market needed steady and sustained growth: “The worry is that with demand outstripping good quality supply, house prices might gather momentum. The last thing we want to see is a return to the unsustainable days of double digit growth. Yes, the property market is in a much healthier state, and initiatives like the Funding for Lending Scheme have played a key role in this. But the market is not out of the woods yet.”

The number of loans advanced to first-time buyers in May was at its highest level since November 2007, according to figures released today by the Council of Mortgage Lenders.
Transaction numbers increased 41.8% from 17,700 in May 2012 to 25,100 in May 2013. The last time lenders advanced more loans to first-time buyers was in November 2007, when a total of 28,900 loans were advanced to borrowers looking to get on the housing ladder. The total value of all first time buyer lending was £3.4bn in May, up 54% on the £2.2bn advanced in the same month last year.
The number of loans to first-time buyers in May was up 29.3 per cent from 19,400 in April, while the total value of lending was up 36 per cent from £2.5bn. There are signs emerging that lenders are starting to lend at higher LTVs as the average first-time buyer LTV ratio rose from 81% in April to 83% in May, the highest level since November 2008.
CML director general Paul Smee says: “Although monthly lending is still running at far less than half its typical monthly level during the peak, there is no doubt that the mortgage market is firmly open for business. Both the borrowing appetite of first-time buyers, and the availability of attractive mortgages for them, has improved markedly since a year ago.”

House prices in June rose at their fastest rate year-on-year in almost three years, according to the latest Nationwide Building Society house price index. Prices rose 1.9% year-on-year in June to £168,941, up from £165,738 a year earlier. On a monthly basis, prices rose 0.3%, up from £167,912 in May.
Nationwide chief economist Robert Gardener says: “The annual rate of house price growth increased to 1.9% in June – the fastest pace since September 2010. A number of factors are likely to be contributing to the recent acceleration.
“Demand for homes has been supported by further modest gains in employment, as well as an improvement in the availability and a reduction in the cost of credit, partly as a result of policy measures, such as the Funding for Lending Scheme. Signs of a modest improvement in wider economic conditions may also be playing a role in boosting buyer sentiment.”
The strongest performing regions continue to be in the South of England, especially London. The South East experienced 2% annual growth in house prices, from £197,564 in the second quarter of 2012 to £202,132 a year later. London grew 5.2% year-on-year, from £302,399 in Q2 2012 to £318,214 in the same quarter a year later, meaning London’s house prices grew about 3.5 times faster than the rest of the UK.
Year-on-year house prices increased 1.2% in Wales, from £131,840 in Q2 2012 to £133,432 a year later. In Scotland, prices fell 1.1% from £136,182 to £134,432 over the same period and, in Northern Ireland, prices fell 2% from £110,422 to £108,116.
Prices are still around 9% below their pre-crisis peak. However, London prices reached a new all-time high, 5% above the £303,739 they reached pre-crisis. House prices in England are currently 5% lower than their 2007 peak, while they are 13% lower in Wales, 12% in Scotland and 53% in Northern Ireland.

Gross mortgage lending has hit its highest level since October 2008 as lenders advanced £14.7bn in May, Council of Mortgage Lenders’ figures show. Lending is a massive 21% up on the £12.2bn lent in April and 17% higher than the £12.6bn lent in May 2012.
CML chief economist Bob Pannell says: “Funding conditions, helped by the funding for lending scheme, continue to look favourable and are supporting more competitive mortgage pricing and availability and a gradual resumption of lenders’ risk appetite.
“While the direction of travel is clear and fits well with the more positive housing surveys from Royal Institution of Chartered Surveyors and others, our forward estimate does imply somewhat stronger house purchase activity than we had been expecting.”

Remortgage lending had its best month in five months in April, helping to boost gross lending by 5%, according to figures released today by the Council of Mortgage Lenders. A total of £3.4bn was advanced to borrowers remortgaging in April, up 9.7% on the £3.1bn advanced in March.
While remortgaging figures where 2.9% down on the £3.5bn advanced in April 2012, it was the highest figure since November last year when £3.4bn was advanced to remortgage borrowers.
The CML reported its total gross lending figures last month, showing April had experienced its strongest month since 2008. The 4.3% increase in gross lending from £11.6bn to £12.1bn in April, was in part due to the strength of remortgage lending, according to the CML.

The average UK house price increased by 0.4% in May – up from £165,586 in April to reach £167,912 – according to the latest house price index from Nationwide. The index shows house prices have experienced an annual increase of 1%, up from 166,022 in May 2012, which represents the largest annual increase since November 2011.
Nationwide chief economist Robert Gardner says today’s figures reflect growing momentum in the housing market and forecasts the wider UK economy to undergo a gradual recovery in the coming quarters.
He says: “It’s not just prices – a number of measures of housing market activity have also started to move higher. In the first four months of 2013 the number of property transactions was running at around 5% above the monthly average prevailing in 2012. The number of mortgage approvals for house purchase in the first quarter of 2013 was also around 4% above last year’s monthly average.”

The mortgage market experienced its strongest April since 2008, according to figures released today by the Council of Mortgage Lenders. In April, lenders advanced an estimated £12.1bn to borrowers, up 4.3% on the £11.6bn advanced the month before.
April’s figure was also up 22.2% on the £9.9bn advanced to borrowers in April 2012. However, the trade body says year-on-year comparisons are misleading as last April’s figure comes immediately after the stamp duty holiday ended.
The last time gross lending in April was higher was in 2008, when lenders advanced £26.4bn to borrowers. In April 2009, 2010 and 2011 lenders advanced £10.4bn, £10.2bn and £10bn, respectively. April’s gross lending performance is the best since November, when £13bn was advanced to borrowers.