UK Finance has revealed that there were 370,000 new first-time buyer mortgages completed in 2018, some 1.9% more than in 2017.
This is the highest number of first-time buyer mortgages since 2006, when this figure stood at 402,800. The £62 billion of new lending in the year was 4.9% more than in 2017.
UK Finance’s Mortgage Trends Update for December 2018 reported that there were 30,900 new first-time buyer mortgages completed in December 2018, some 1.6% more than in the same month a year earlier. The £5.2 billion of new lending in the month was 4% more year-on-year.
Meanwhile, there were 30,000 new homemover mortgages completed in December 2018, some 1.3% fewer than in the same month a year earlier. The £6.5 billion of new lending in the month was the same year-on-year. In 2018, there were 367,800 new homemover mortgages completed, some 1.9% less than in 2017. The £80 billion of new lending in the year was the same as in 2017.
In addition, there were 34,000 new homeowner remortgages completed in December 2018, some 9.3% more than in the same month a year earlier. The £6.1 billion of remortgaging in the month was 13% more year-on-year. In 2018, there were 476,900 new homeowner remortgages completed, some 10.8% more than in 2017. The £85 billion of new lending in the year was 13% more than in 2017.
UK Finance said there were 5,100 new buy-to-let home purchase mortgages completed in December 2018, some 5.6% fewer than in the same month a year earlier. By value this was £0.7 billion of lending in the month, 12.5% down year-on-year. In 2018, there were 66,400 new buy-to-let home purchases completed, some 11.5% less than in 2017. The £9 billion of new lending in the year was 15% less than in 2017.
There were 12,400 new buy-to-let remortgages completed in December 2018, some 25.3% more than in the same month a year earlier. By value this was £2.0 billion of lending in the month, 25% more year-on-year. In 2018, there were 169,100 new buy-to-let remortgages completed, some 11.2% more than in 2017. The £27 billion of new lending in the year was 11.6% more than in 2017.
Jackie Bennett, director of mortgages at UK Finance, said: “The mortgage industry helped 370,000 people buy their first home in 2018, the highest number in 12 years, as competitive deals and government schemes such as Help to Buy continue to boost the market.
“Homeowner remortgaging also saw strong growth driven by customers locking into attractive rates, a trend we expect to continue in 2019 as more fixed-rate mortgages come to an end.
“Demand for new buy-to-let purchases continues to be dampened by recent tax and regulatory changes. However, the number of buy-to-let remortgages reached a record high of almost 170,000 last year, suggesting many landlords remain committed to the market.”
Matt Andrews, managing director of mortgages at Masthaven, added: “Despite the looming Brexit deadline, today’s figures show that first-time buyers aren’t put off as the property sector increasingly becomes a buyers’ market. Thanks to a combination of stamp duty relief and government initiatives such as Help to Buy, the future is looking particularly bright for this segment of buyers. Remortgaging figures are likely to remain steady with little threat of impending rate rises – at least for the time being anyway.
“It is interesting to note the continued downturn of buy-to-let activity across the market. From tax alterations to regulatory updates, it seems the sector is really feeling the effects of these changes. In order to keep the market attractive to buy-to-let investors and to avoid further market uncertainty, greater incentives and lending products will be paramount.”