Home-owner house purchase in Wales in the final quarter of 2014 was 6,900 loans, which was unchanged compared to the third quarter but 4% down compared to the fourth quarter of 2013. These loans by value was £830m, down 1% compared to the previous quarter and the fourth quarter 2013.
Overall in 2014, the total number of loans advanced for home-owner house purchase was 26,200, which was up 9% compared to 2013. These loans totalled £3.1bn, an increase of 15% compared to 2013.
First-time buyer affordability changed slightly in Wales quarter-on-quarter with first-time buyers typically borrowing 3.19 times their gross income, less than the 3.23 income multiple in the third quarter and less than the UK average of 3.38.
The typical loan size for first-time buyers was £100,625 in the fourth quarter, down from £100,800 in the previous quarter. The typical gross income of a first-time buyer household was £31,930 compared to £31,868 in the third quarter.
The relatively low level of interest rates saw first-time buyers' payment burden remaining relatively low in the third quarter at 17.9% of gross income being spent to cover capital and interest payments, higher the third quarter's 18.2%.
Home mover affordability changed fractionally, with home movers typically borrowing 2.76 times their gross income compared 2.79 in the third quarter and to 3.03 for the UK overall.
The typical loan size for home movers was £123,356 in fourth quarter, up from £121,928 in the previous quarter. The typical gross household income of a home mover was £45,310 in fourth quarter compared to £46,032 in the third quarter.
Home movers' payment burden remained relatively low in Wales at 17.2% of gross income being spent to cover monthly capital and interest payments, less than the 17.5% in the third quarter and considerably less than the 18.4% UK average.
Remortgage lending in Wales 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.
Remortgage lending in Wales came to 12,800 loans in 2014, with these loans by value were £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."
