UK Finance has reported that there were 32,260 new first-time buyer mortgages completed in October 2019, 2.8% more than in the same month in 2018.
There were 33,370 homemover mortgages completed in October 2019, 4.2% more than in the same month a year earlier.
Meanwhile, there were 18,910 new remortgages with additional borrowing in October 2019, 20.8% fewer than in the same month in 2018. For these remortgages, the average additional amount borrowed in October was £51,000.
There were 20,660 new pound-for-pound remortgages (with no additional borrowing) in October 2019, 20% fewer than in October 2018. This drop in activity follows a strong period of growth in September and is in line with our refinancing schedule model.
In addition, there were 6,600 new buy-to-let home purchase mortgages completed in October 2019, 1.5% fewer than this time last year. There were 16,200 remortgages in the buy-to-let sector, 2.4% fewer than the same month in 2018.
Dave Harris, CEO at equity release lender More 2 Life, added: “First time buyer numbers continue to look promising but those already on the property ladder are more cautious – arguably looking to improve rather than move until they are more confident about the economic outlook.
“For older homeowners in particular, this option may be especially appealing if they need to adapt their home to make it more accessible or to meet their changing retirement needs. However, it’s important to note that other sources of funding exist such as equity release, which can help homeowners make their renovations a reality. Indeed, almost two-thirds (61%) of More 2 Life customers have said they’ve taken out an equity release loan to fund home improvements.
“For any borrowers considering equity release as a way to improve their home, it is vital that they seek professional, specialist advice as part of their equity release journey. Advisers are an integral part of the lifetime mortgage process and can help guide older borrowers to the best solution for their later life needs – all the while ensuring they can live comfortably during their retirement.”