Proportion of income needed for new mortgages at five-year low: CML

Published on

November saw homebuyers needing to use less of their income to cover their mortgage interest than at any time for more than five years, according to the Council of Mortgage Lenders (CML).

The trade body reported that home movers are experiencing a low debt burden by historical standards, typically needing only 10.6% of gross income in November 2009 to cover mortgage interest payments, down from 11.1% in October.

This is the lowest debt burden on home movers since the CML started recording this data in 1974, other than during a brief low of 10.2% in the middle of 1996.

The debt burden on first time buyers also reduced, with 14.4% of gross income needed in November, down from 15.1% in October – the lowest it has been since May 2004.

Lending volumes experienced a seasonal dip in November. Although the 53,000 house purchase loans represented a 4% decline on October, the number was a 66% increase on November 2008. On the other hand, the 31,000 loans for remortgage fell 6% from October with a drop of 39% year on year, showing a continuation of the “two speed”” market for house purchase and remortgaging

COMMENT ON MORTGAGE SOUP

We want to hear from you!
Leave a comment and get the conversation started.
You need to register to post, so please login or sign up below.

Latest articles

Goldman Sachs discloses 3.15% stake in Secure Trust Bank

Goldman Sachs has reported a 3.15% voting interest in Secure Trust Bank following a...

Market Harborough launches rental scheme offering deposit contributions to first-time buyers

Market Harborough Building Society is offering aspiring homeowners the chance to recover 60% of...

Tipton adds discounted rates for expat and limited company landlords

Tipton & Coseley Building Society has expanded its variable rate buy-to-let mortgage range with...

WIS Mortgages sets out five-year adviser growth strategy

WIS Mortgages has announced a five-year growth plan centred on expanding its adviser community...

Nivo targets specialist lenders with AI-powered case management service

Nivo has launched an AI case coordination platform aimed at helping specialist lenders process...

Latest publication

Other news

Goldman Sachs discloses 3.15% stake in Secure Trust Bank

Goldman Sachs has reported a 3.15% voting interest in Secure Trust Bank following a...

Market Harborough launches rental scheme offering deposit contributions to first-time buyers

Market Harborough Building Society is offering aspiring homeowners the chance to recover 60% of...

Tipton adds discounted rates for expat and limited company landlords

Tipton & Coseley Building Society has expanded its variable rate buy-to-let mortgage range with...