UK Finance has reported that there were 32,200 new first-time buyer mortgages completed in May 2018, 8.1% more than in the same month a year earlier.
The £5.4bn of new lending in the month was 12.5% more year-on-year. The average first-time buyer is 30 and has a gross household income of £42,000.
Meanwhile, there were 31,100 new homemover mortgages completed in the month, some 4.4% more than in the same month a year earlier. The £6.6bn of new lending in the month was 4.8% more year-on-year. The average homemover is 39 and has a gross household income of £55,000
There were 36,000 new homeowner remortgages completed in the month, some 7.1% more than in the same month a year earlier. The £6.3bn of remortgaging in the month was 6.8% more year-on-year.
UK Finance said there were 5,500 new buy-to-let home purchase mortgages completed in the month, some 9.8% fewer than in the same month a year earlier. By value this was £0.7bn of lending in the month, 22.2% down year-on-year.
There were 14,600 new buy-to-let remortgages completed in the month, some 15% more than in the same month a year earlier. By value this was £2.3bn of lending in the month, 21.1% more year-on-year.
Jackie Bennett, director of mortgages at UK Finance, said: “The mortgage market is seeing a pre-summer boost, driven by a rise in the number of first-time buyers and strong remortgaging activity. It is also particularly encouraging to see an increase in homemovers, after a period of relative sluggishness in this important segment of the market.
“However, affordability remains a challenge for some prospective buyers and this is reflected by a gradual increase in loan to income multiples.
“Meanwhile purchases in the buy-to-let market continue to be constrained by recent regulatory and tax changes, the full impact of which have yet to be fully felt.”
Steve Seal, director of sales and marketing at, Bluestone Mortgages, added: “Whilst it’s good to see continued first-time buyer activity, these results do not reflect the growing pool of borrowers who struggle to access funding. Contractors, entrepreneurs or self-employed workers with complex financial backgrounds usually struggle to meet the vanilla criteria of high-street lenders – even if they have a reliable history of repayments.
“The specialist lending market has a significant role to play in closing this funding gap; providing a service that understands an individual’s circumstances and supporting borrowers in their homeownership aspirations.”