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Mortgage lending dips but payments cheaper

Monday, 14 November 2011 11:39 AM

Mortgages continue to become more affordable – if you can get one that is.

New figures from the Council of Mortgage Lenders (CML) show that the number of loans for house purchase (down two per cent) and for remortgaging (down one per cent) both fell slightly in September compared to August.

However, the 18,100 first-time buyers who were able to get a mortgage were rewarded with interest payments accounted for just 12.7 per cent of their income, down from 13.0 per cent in August.

The CML said this reflected mortgage price easing, especially in the 80-90 per cent loan-to-value bracket, which has gone with greater mortgage availability at those levels.
For home movers, interest payments are even more affordable. They accounted for just 9.4 per cent of their income, the lowest since monthly records began in 2002.

Despite the fall in remortgaging compared to August, the number of people rearranging the loan for their existing property is up by 25 per cent on this time last year.

CML director general Paul Smee said: "Although both house purchase and remortgage loans experienced a small drop in September the overall market to date shows a stable picture.”

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