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Mortgages

Volume 476: debated on Thursday 22 May 2008

To ask the Secretary of State for Communities and Local Government what estimate she has made of (a) the number and (b) the percentage of new mortgages taken out in each year between 2003 and 2007 with a loan to value ratio in excess of 100 per cent. (206683)

Data on mortgages for house purchase are available from the Regulated Mortgage Survey which is supplied to Communities and Local Government by the Council of Mortgage Lenders. As the survey is a sample, data on the total number of new mortgages are unavailable from this source. However by deriving proportions from the survey and applying them to the total number of new mortgages in the UK, as published by the Council of Mortgage Lenders, an estimate of the total number can be provided.

The estimated number and proportion of new mortgages in the UK with a loan to value ratio in excess of 100 per cent. for the years 2003 to 2007 are shown in the following table:

Number

Proportion (%)

2003

27,100

2.2

2004

20,000

1.6

2005

17,000

1.7

2006

20,800

1.9

2007

18,500

1.8

Source: Regulated Mortgage Survey and the Council of Mortgage Lenders.

Loan to value has been calculated using the mortgage advance against the purchase price which may not be the same as the value of the property.

Some mortgage advances also include fees on top of the advance required for the purchase of the property. Hence some 100 per cent. loan to value mortgages will have been included in the figures above for mortgages in excess of 100 per cent. of value.