November rise in first-time buyer numbers

UK Finance has reported that there were 36,200 new first-time buyer mortgages completed in November 2018, some 5.8% more than in the same month a year earlier.

The £6.0bn of new lending in the month was 9.1% more year-on-year. The average first-time buyer is 30 and has a gross household income of £42,000.

The trade body’s Mortgage Trends Update for November 2018 said there were 36,200 new homemover mortgages completed in the month, some 1.1% more than in the same month a year earlier. The £7.8bn of new lending in the month was 4% more year-on-year. The average homemover is 39 and has a gross household income of £55,000.

Meanwhile, there were 39,600 new homeowner remortgages completed in the month, some 1.3% more than in the same month a year earlier. The £6.8bn of remortgaging in the month was the same year-on-year.

In addition, there were 6,100 new buy-to-let home purchase mortgages completed in the month, some 9% fewer than in the same month a year earlier. By value this was £0.8bn of lending in the month, 11.1% down year-on-year.

There were 15,000 new buy-to-let remortgages completed in the month, some 9.5% more than in the same month a year earlier. By value this was £2.4bn of lending in the month, 9.1% more year-on-year.

Jackie Bennett, director of mortgages at UK Finance, said: “A mixture of competitive deals and schemes including Help to Buy saw even more first-time buyers get a foot on the housing ladder during November.

“Meanwhile, homeowner remortgaging activity has steadied, after reaching its highest level in a decade the previous month as a large number of fixed-rate deals came to an end.

“In the buy-to-let market new home purchases remain subdued, while remortgaging continues to grow as landlords lock into attractive rates.”

Kevin Roberts, director of Legal & General Mortgage Club, added: “Despite the ongoing political turbulence in the UK, the combination of low interest rates and innovative solutions from lenders continues to drive activity within the mortgage market.

“However, with so many options now available choosing the right mortgage can often leave borrowers feeling overwhelmed. This is where an independent mortgage adviser can be a helping hand.

“These professionals can help borrowers with tailored advice and access to thousands of mortgages across the market that could be the difference in helping people to make their first or next step on the ladder.”

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