First-time buyers and remortgaging customers boost market

by Aaron Strutt

Jul 12 2018

Mortgage lending figures have increased following a rise in the number of first-time buyers and remortgaging customers.

Data from UK Finance’s Mortgage Trends Update for May 2018 show there were 36,000 remortgages completed in May, an increase of 7.1% on the same month a year ago. The £6.3bn of remortgaging in the month was 6.8 per cent more year-on-year.

There were 32,200 new first-time buyer mortgages completed in the month, some 8.1 per cent more than in the same month a year earlier. The £5.4bn of new lending in the month was 12.5 per cent more year-on-year. The average first-time buyer is 30 and has a gross household income of £42,000.

There were 31,100 new homemover mortgages completed in the month, some 4.4 per cent more than in the same month a year earlier.  The £6.6bn of new lending in the month was 4.8 per cent more year-on-year. The average homemover is 39 and has a gross household income of £55,000.

Aaron Strutt, product director at Trinity Financial, says: "The mortgage lenders are consistently undercutting each other to make sure they have the lowest rates to tempt first-time buyers and remortgaging borrowers.

“Recent figures from technology firm CACI show that two-year fixed rates are still very popular. There has been an increase in the take-up of five-year fixes over the 18 months and the minority of borrowers are locking into three or ten-year fixes.”

UK Finance's figures show there were 5,500 new buy-to-let home purchase mortgages completed in the month, some 9.8 per cent fewer than in the same month a year earlier.

By value this was £0.7bn of lending in the month, 22.2 per cent down year-on-year. There were 14,600 new buy-to-let remortgages completed in the month, some 15 per cent more than in the same month a year earlier. By value this was £2.3bn of lending in the month, 21.1 per cent more year-on-year.

Call Trinity Financial on 020 7016 0790 to secure a mortgage