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| Mortgage lending 'rises slightly' | Mortgage lending 'rises slightly' |
| (30 minutes later) | |
| The number of mortgages handed out by lenders rose slightly in February but activity in the market remains weak, according to a lenders' group. | The number of mortgages handed out by lenders rose slightly in February but activity in the market remains weak, according to a lenders' group. |
| Loans for house purchases in February in the UK rose to 24,300, up by 4% compared with January, the Council of Mortgage Lenders (CML) said. | Loans for house purchases in February in the UK rose to 24,300, up by 4% compared with January, the Council of Mortgage Lenders (CML) said. |
| But the group warned that activity in the market remained at a "very low level historically". | But the group warned that activity in the market remained at a "very low level historically". |
| And first-time buyers had to find a record typical deposit of 25%. | And first-time buyers had to find a record typical deposit of 25%. |
| "We are not convinced that underlying trends have shifted sufficiently to change our forecasts for mortgage market activity in 2009, but there are some positive signs for later in the year," said CML director general Michael Coogan. | "We are not convinced that underlying trends have shifted sufficiently to change our forecasts for mortgage market activity in 2009, but there are some positive signs for later in the year," said CML director general Michael Coogan. |
| "Some large banks are making more funding available through enhanced lending commitments, which is helpful but will not satisfy consumer borrowing demand on its own." | "Some large banks are making more funding available through enhanced lending commitments, which is helpful but will not satisfy consumer borrowing demand on its own." |
| Remortgaging down | Remortgaging down |
| The number of home loans completed for all house buyers rose slightly month-on-month, but the total value of these homes remained unchanged at £3.1bn. | The number of home loans completed for all house buyers rose slightly month-on-month, but the total value of these homes remained unchanged at £3.1bn. |
| Such [typical deposit] amounts remain out of reach for all but the most affluent buyers Michael Coogan, CML | Such [typical deposit] amounts remain out of reach for all but the most affluent buyers Michael Coogan, CML |
| While the figures, which echoed earlier data on mortgage approvals, suggested some lift for the housing market, it remains in stark contrast with recent years. | While the figures, which echoed earlier data on mortgage approvals, suggested some lift for the housing market, it remains in stark contrast with recent years. |
| The number of mortgages completed was running at about one-third of the average February total of 76,000 loans for house purchase between 2002 and 2007. | The number of mortgages completed was running at about one-third of the average February total of 76,000 loans for house purchase between 2002 and 2007. |
| The CML also reported a 20% decline in the number of remortgaging deals, down from 44,000 in January to 35,000 in February. | The CML also reported a 20% decline in the number of remortgaging deals, down from 44,000 in January to 35,000 in February. |
| Lenders' standard variable rate (SVR) deals are tending to be more attractive than new fixed-rate deals for owners, with interest rates having plunged in recent months. | Lenders' standard variable rate (SVR) deals are tending to be more attractive than new fixed-rate deals for owners, with interest rates having plunged in recent months. |
| Falling house prices also mean householders have less equity, excluding these people from the best deals, which require a large deposit. | Falling house prices also mean householders have less equity, excluding these people from the best deals, which require a large deposit. |
| But with the Bank rate unlikely or unable to fall further, new home loan demand is shifting back to fixed-rate deals, rather than mortgages which track the Bank rate. | But with the Bank rate unlikely or unable to fall further, new home loan demand is shifting back to fixed-rate deals, rather than mortgages which track the Bank rate. |
| In February, 56% of new loans were at a fixed rate, up from 49% in January, while 31% were tracker products, down from 38% in January. | In February, 56% of new loans were at a fixed rate, up from 49% in January, while 31% were tracker products, down from 38% in January. |
| First-time buyers | First-time buyers |
| The situation remained tough for first-time buyers. They typically had to find a deposit of 25% - a record amount - and so only 9,400 home loans were completed. | The situation remained tough for first-time buyers. They typically had to find a deposit of 25% - a record amount - and so only 9,400 home loans were completed. |
| KEY STATISTICS 25%: Typical first-time buyers' deposit4%: Rise in mortgages completed in February compared with January47%: Fall in completed mortgages for house purchases compared with a year earlier Source: CML | KEY STATISTICS 25%: Typical first-time buyers' deposit4%: Rise in mortgages completed in February compared with January47%: Fall in completed mortgages for house purchases compared with a year earlier Source: CML |
| "Such amounts remain out of reach for all but the most affluent buyers, for example people returning to home ownership after a period of renting, divorcees, or those who get financial assistance from their family," said Mr Coogan. | "Such amounts remain out of reach for all but the most affluent buyers, for example people returning to home ownership after a period of renting, divorcees, or those who get financial assistance from their family," said Mr Coogan. |
| This total of completed loans to first-time buyers was up 7% compared with January, but 46% lower than the same month a year earlier. | This total of completed loans to first-time buyers was up 7% compared with January, but 46% lower than the same month a year earlier. |
| These figures are not seasonally adjusted. A pick-up in mortgages would be expected after a lull at the start of the year. The completion figures tend to lag behind other mortgage data. | These figures are not seasonally adjusted. A pick-up in mortgages would be expected after a lull at the start of the year. The completion figures tend to lag behind other mortgage data. |
| Previously, the CML reported that gross mortgage lending in February was at its lowest level for any month since February 2001. | Previously, the CML reported that gross mortgage lending in February was at its lowest level for any month since February 2001. |
| The CML said its members' ability to lend was drying up, because too many savers were choosing to put their money in National Savings policies. | The CML said its members' ability to lend was drying up, because too many savers were choosing to put their money in National Savings policies. |
| National Savings & Investments (NS&I) has raised much more than its original forecast as savers searched for a completely safe home for their money. | National Savings & Investments (NS&I) has raised much more than its original forecast as savers searched for a completely safe home for their money. |
| Are you a first-time buyer? Are you finding it extremely difficult to raise the money for a deposit? How difficult is it to get a foot on a property ladder at the moment? | |
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