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| Mortgage data points to slowdown in UK housing market in October Mortgage data points to slowdown in UK housing market in October | |
| (about 2 hours later) | |
| The housing market slowed down in October, with the number of mortgages granted to home movers down 20% on a year ago, according to data from the Council of Mortgage Lenders. | The housing market slowed down in October, with the number of mortgages granted to home movers down 20% on a year ago, according to data from the Council of Mortgage Lenders. |
| There was also a fall in the buy-to-let market, where activity has been hit by tax changes. But the lending market was bolstered by the amount of remortgage activity which hit its highest level since January 2009. | There was also a fall in the buy-to-let market, where activity has been hit by tax changes. But the lending market was bolstered by the amount of remortgage activity which hit its highest level since January 2009. |
| The data was seized upon as evidence that the EU referendum in June had dented confidence and a sign that home owners were responding to the Bank of England’s rate cut to 0.25% after the vote for Brexit. | The data was seized upon as evidence that the EU referendum in June had dented confidence and a sign that home owners were responding to the Bank of England’s rate cut to 0.25% after the vote for Brexit. |
| The CML said the amount borrowers were paying as a percentage of their household income to service repayments fell to a record low for both first-time buyers and home movers at 17.6%. | The CML said the amount borrowers were paying as a percentage of their household income to service repayments fell to a record low for both first-time buyers and home movers at 17.6%. |
| Paul Smee, its director general, said that while buy-to-let lending was weak, the remortgage market was strong. “This appears to be linked to borrowers taking advantage of the repricing of mortgages following the base rate cut,” he said. | Paul Smee, its director general, said that while buy-to-let lending was weak, the remortgage market was strong. “This appears to be linked to borrowers taking advantage of the repricing of mortgages following the base rate cut,” he said. |
| About 28,900 loans were granted to home movers in October, a 20% decrease on a year ago and 8% down month on month. Home movers borrowed £5.9bn, down 9% on a the previous month and 18% on a year ago. | About 28,900 loans were granted to home movers in October, a 20% decrease on a year ago and 8% down month on month. Home movers borrowed £5.9bn, down 9% on a the previous month and 18% on a year ago. |
| The figures followed last month’s warning from the Royal Institution of Chartered Surveyors that number of properties on the market fell in October while the number of buyers rose. | The figures followed last month’s warning from the Royal Institution of Chartered Surveyors that number of properties on the market fell in October while the number of buyers rose. |
| Remortgage activity totalled £6.1bn, up 11% on September and 7% on a year ago. There was also a rise in the number of loans to 34,700, up 10% month on month and 5% on a year ago. | Remortgage activity totalled £6.1bn, up 11% on September and 7% on a year ago. There was also a rise in the number of loans to 34,700, up 10% month on month and 5% on a year ago. |
| Andy Knee, the chief executive of legal services provider LMS, said: “October was a strong month for the remortgage market, with activity hitting an eight-year high, while the rest of the market stood still. The ramifications of June’s referendum result are hitting home. | Andy Knee, the chief executive of legal services provider LMS, said: “October was a strong month for the remortgage market, with activity hitting an eight-year high, while the rest of the market stood still. The ramifications of June’s referendum result are hitting home. |
| “Homeowners are taking advantage of low rates to secure reduced monthly repayments.” | “Homeowners are taking advantage of low rates to secure reduced monthly repayments.” |
| Activity in the buy-to-let market – which is being monitored by the Bank of England – has been slowing as a result of the 3% stamp duty surcharge on second properties introduced in April. | Activity in the buy-to-let market – which is being monitored by the Bank of England – has been slowing as a result of the 3% stamp duty surcharge on second properties introduced in April. |
| Lending increased 7% month on month to £3bn, but remains 21% lower year on year. Nearly two-thirds of buy-to-let loans were remortgages rather than for house purchases. | Lending increased 7% month on month to £3bn, but remains 21% lower year on year. Nearly two-thirds of buy-to-let loans were remortgages rather than for house purchases. |