UK Finance has revealed that there were 46,900 new homeowner remortgages completed in July, some 23.1% more than in the same month a year earlier.
The £8.7bn of remortgaging in the month was 26.1% more year-on-year.
There were 32,600 new homemover mortgages completed in the month, some 3.8% fewer than in the same month a year earlier. The £7.3bn of new lending in the month was the same year-on-year. The average homemover is 39 and has a gross household income of £57,000.
In addition, there were 31,400 new first-time buyer mortgages completed in the month, some 1% more than in the same month a year earlier. The £5.4bn of new lending in the month was 5.9% more year-on-year. The average first-time buyer is 30 and has a gross household income of £42,000.
Meanwhile, there were 5,500 new buy-to-let home purchase mortgages completed in the month, some 14.1% 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.
UK Finance also said there were 14,700 new buy-to-let remortgages completed in the month, some 7.3% 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: “The residential remortgaging market saw its strongest July in over a decade, as homeowners pre-empted the latest Bank of England rate rise by locking into attractive fixed-rate deals.
“There was also considerable growth in remortgaging in the buy-to-let sector, showing that while recent tax and regulatory changes are impacting on new purchases, many existing landlords remain in the market.
“The number of first-time buyers has returned to modest year-on-year growth. However, affordability remains a challenge for many prospective borrowers, underlining the importance of clarity over the future of schemes such as Help to Buy.”
Rob McCoy, senior product & business manager at TMA, added: “This month’s results mirror the same pattern we have seen since the start of the year – strong remortgage activity coupled with a decrease in home movers and a quiet buy-to-let purchase market. It is likely that the low number of people moving home can be attributed to the World Cup having temporarily distracted a lot of the UK’s attention, alongside the annual flurry of summer holidays.
“Advisers should already have been working hard to contact their backbook and secure clients the best rates on the market, particularly in the wake of the interest-rate rise in August. As autumn approaches we are expecting to see clients settle in their properties with longer, fixed term rates.”