Communities, Equality and Local Government Committee
Action Point from CELG(4)-24-13: 26 September 2013
At the Communities, Equality and Local Government Committee meeting on 26 September, the Committee received evidence from Council of Mortgage Lenders, as part of its inquiry into barriers to home building in Wales. They agreed to provide the following information:
On the point about mortgage affordability, here is data from our September press release showing mortgage payments as a proportion of income:
First-time buyers, lending and affordability
|
|
Number of loans |
Value of loans £m |
Average loan to value |
Average income multiple |
Proportion of income spent on interest payments |
Proportion of income spent on capital and interest payments |
|
July |
25,300 |
3,500 |
82% |
3.31 |
11.8% |
19.2% |
|
Change from |
5.4% |
6.1% |
80% |
3.33 |
12.1% |
19.3% |
|
Change from |
40.6% |
45.8% |
81% |
3.24 |
13.7% |
20.0% |
Home movers, lending and affordability
|
|
Number of loans |
Value of loans £m |
Average loan to value |
Average income multiple |
Proportion of income spent on interest payments |
Proportion of income spent on capital and interest payments |
|
July |
32,000 |
5,600 |
70% |
2.92 |
8.8% |
18.3% |
|
Change from |
11.9% |
16.7% |
70% |
2.91 |
9.0% |
18.2% |
|
Change from |
9.2% |
12.0% |
69% |
2.89 |
10.2% |
19.3% |
On the point about lending to the social housing sector, definitive data for Wales is available in the 2012 global accounts published by Community Housing Cymru. They show the following in the Private Finance Summary (Appendix A1):
|
Name of Lender |
2012 Amount of Loan Facility £m |
2012 Loan Drawn Down £m |
2012 Undrawn Facility £m |
2011 Undrawn Facility £m |
2010 Undrawn Facility £m |
|
Bank of Ireland |
5.1 |
5.1 |
- |
0.2 |
0.2 |
|
Barclays Bank Plc |
572.8 |
292.9 |
279.9 |
310.9 |
175.3 |
|
Cooperative |
43.0 |
43.0 |
- |
4.7 |
4.2 |
|
Dexia |
99.7 |
99.5 |
0.2 |
0.2 |
0.2 |
|
European Investment Bank |
62.5 |
20.0 |
42.5 |
47.5 |
47.5 |
|
Fresh PLC |
3.2 |
3.2 |
- |
- |
- |
|
Handelsbanken |
7.0 |
6.6 |
0.4 |
0.4 |
0.4 |
|
HBOS (Halifax) Plc |
131.2 |
100.1 |
31.1 |
42.1 |
26.3 |
|
Housing Securities |
28.8 |
28.8 |
- |
- |
- |
|
Lloyds TSB |
256.6 |
167.7 |
88.9 |
112.7 |
136.6 |
|
Nationwide |
442.4 |
344.4 |
98.0 |
122.5 |
84.8 |
|
Orchardbrook |
29.1 |
29.1 |
- |
0.2 |
0.3 |
|
Principality |
195.2 |
170.0 |
25.2 |
39.0 |
30.9 |
|
RBS Group (inc Nat West) |
507.9 |
282.8 |
225.1 |
252.2 |
146.2 |
|
Santander |
220.8 |
133.3 |
87.5 |
68.3 |
26.1 |
|
Tai Cymru |
8.3 |
8.3 |
- |
- |
- |
|
The Housing Finance Corporation |
156.6 |
141.5 |
15.1 |
15.0 |
0.2 |
|
Yorkshire Building Society |
15.0 |
1.0 |
14.0 |
15.0 |
15.0 |
|
Other |
6.1 |
1.0 |
5.1 |
- |
- |
|
Total |
2,791.3 |
1,878.3 |
913.0 |
1,030.9 |
694.2 |
On the point about student loans, I can confirm that we have not undertaken any specific research on this but that if we do in future, we will ensure the Committee is made aware of it, as Paul Smee said.