UK’s Finance has reported steady increases in mortgage lending for first-time-buyers and home movers in November 2017, compared to the previous month and the equivalent period in 2016.
There were 34,800 new first-time buyer mortgages in the month, some 15.2% more than in the same month a year earlier. The £5.6bn of new lending in the month was 16.7% more year-on-year. The average first-time buyer is 30 and has an income of £40,000.
UK Finance said there were 36,200 new home mover mortgages in the month, some 16.8% more than in the same month a year earlier. The £7.5bn of new lending in the month was 19% more year-on-year. The average home mover is 39 and has an income of £54,000.
In addition, there were 38,400 new homeowner remortgages in the month, some 8.5% more than in the same month a year earlier. The £6.5bn of remortgaging in the month was 10.2% more year-on-year.
Meanwhile, there were 6,600 new buy-to-let house purchase mortgages in the month, some 1.5% fewer than in the same month a year earlier. By value this was £0.9bn of lending in the month, the same year-on-year.
There were 13,500 new buy-to-let remortgages in the month, some 3.6% fewer than in the same month a year earlier. By value this was £2.1bn of lending in the month, 4.5% down year-on-year.
Paul Smee, head of mortgages at UK Finance, said: “The data shows housing market activity remains buoyant, despite November’s rise in the base rate. Steady increases in lending for house purchases together with increases in homeowner remortgages reflect a keenness among consumers to benefit from still historically low interest rates, and a highly competitive marketplace.
“In contrast, declines in buy-to-let lending reflect the changing regulatory and fiscal environment for landlord businesses, where some landlords might be inclined to reappraise the viability of their portfolios.”
Jeremy Duncombe director, Legal & General Housing Partnerships, added: “The first interest rate rise in a decade has evidently had only a limited impact on annual price growth, with prices continuing to rise in November. Though some potential buyers might have been deterred by the base rate rise, for most borrowers the Bank of England’s decision meant only a modest increase of £25 a month for the average borrower.
“However, there remains the potential for another base rate rise in the future. Hopeful buyers and existing homeowners coming to end their mortgage deals would be prudent to begin searching for a new deal now, well before a potential rise is factored in by the market. Speaking to a broker can be a great place to start, as their knowledge and understanding of the market, as well as the improved choice they offer, can give borrowers the best chance of finding a great deal, whether it’s to get their foot on the ladder or secure their rates for the future.”