New CML data on the characteristics of lending in Wales in the fourth quarter of 2014 show it remains largely consistent with the previous two quarters of lending.

CML Gross Mortgage Lending

New CML data on the characteristics of lending in Wales in the fourth quarter of 2014 show it remains largely consistent with the previous two quarters of lending.

In the fourth quarter of 2014:

  • First-time buyers in Wales borrowed £330m to purchase a house representing 3,200 loans. This was unchanged compared to the third quarter in value but up 3% in number of loans. Compared to the fourth quarter of 2013, total number of loans was unchanged but the amount borrowed increased by 3%.
  • The number of home movers loans declined quarter-on-quarter to 3,700, valued at £500m, which was down 3% in volume and down 2% in value compared to the third quarter. Compared to the fourth quarter of 2013, there was a decrease of 8% in volume and down 2% in value.
  • Remortgage lending increased quarter-on-quarter in the fourth quarter to 3,200 loans (£330m), which was up 3% in volume but unchanged in value on the third quarter. Compared to the fourth quarter of 2013, activity was down 16% in volume and 13% in value.

In 2014 as a whole:

  • Wales accounted for 2.8% of the UK-wide house purchase activity, down from 2.9% in 2013.
  • First-time buyers in Wales were advanced 12,100 loans reflecting £1.3bn by value. This was 14% up in volume compared to 2013, and 20% up in value.
  • Home movers in Wales were advanced 14,000 loans, which was up 4% on 2013. These loans were worth £1.8bn, which was up 11%.
  • Remortgage lending in Wales came an annual amount of 12,800 loans totalling £1.3bn. This was 13% down in volume compared to 2013, and 7% down in value.

Peter Hughes, chair of CML Cymru, commented:

“The Welsh market performed consistently over the last three quarters, with roughly the same number of borrowers each quarter taking out loans to buy a home. Improving wider economic conditions, aided by government schemes like Help to Buy, saw the strongest annual house purchase figures in Wales since 2007.

“Unlike the UK overall, Wales has also seen remortgage loans increase this quarter. This growth across the different lending types should give optimism for the Welsh mortgage market in 2015.”