First-time buyer (FTB) mortgages and home mover mortgages rise year on year whilst remortgages fall in the year to July.
According to the ‘Mortgage Trends Update’ by UK Finance, FTBs took out 32,640 new mortgages in July. This figure represented a 5.8% increase when compared to the same month a year earlier.
Similarly, home mover mortgages completed in July increased to 32,710, a 1.4% rise from July 2018.
Surprisingly, the 5,800 buy-to-let home purchase mortgages increased by 5.5% compared with July 2018 despite the changes to the sector this year. Buy-to-let remortgages also increased by 2% to 15,100.
However, fewer people were remortgaging their residential properties in the year to July. Remortgages with no additional borrowing stood at 20,380 in July. This equated to a fall of 12.9% from a year earlier. Furthermore, the 20,760 remortgages with additional borrowing represented a decline of 7.1% compared with July 2018.
A fall in the number of fixed rate mortgages coming to an end and the growing popularity of product transfers have been attributed to the decline.
Shaun Church, Director at Private Finance, commented:
“As existing homeowners approach the UK property market with a slight sense of caution, first-time buyers continue to be emboldened by the current market conditions with the value of lending to first-time buyers reaching the highest level seen so far in 2019.
“The traditional barriers that have long been blocking many first-time buyers from purchasing a home over the years are eroding. House prices are easing, stamp duty has been taken out of the equation for many and mortgage rates have fallen considerably. The challenge of raising a sizeable deposit – which has typically been the greatest obstacle facing first-time buyers – has been minimised or removed altogether thanks to the flurry of 90-95% mortgages and launch of 100% mortgages.
“The options available to assist first-time buyers have arguably never been greater. The advice of an independent mortgage broker is therefore crucial for prospective homeowners to help them navigate this field of choice and ensure they’re making decisions best suited to their finances and future goals.”
Do these figures suggest buyers are determined to complete their home moves despite Brexit uncertainty?
