UK Finance has reported that there were 34,900 new first-time buyer mortgages completed in June, some 3.6% fewer than in the same month a year earlier.
The £5.8bn of new lending in the month was 1.7% down year-on-year. The average first-time buyer is 30 and has a gross household income of £42,000.
June saw 33,700 new homemover mortgages completed, 7.9% fewer than in the same month a year earlier. The £7.3bn of new lending in the month was 6.4% down year-on-year. The average home mover is 39 and has a gross household income of £56,000.
In. addition, there were 37,400 new homeowner remortgages completed in the month, some 8.4% more than in the same month a year earlier. The £6.8bn of remortgaging in the month was 13.3% up year-on-year.
Meanwhile, there were 5,400 new buy-to-let home purchase mortgages completed in June, some 19.4% 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 12,600 new buy-to-let remortgages completed in the month of June, the same as June 2017. By value this was £2.0bn of lending in the month, the same year-on-year.
Jackie Bennett, director of mortgages at UK Finance, said: “Remortgaging continued to dominate in June with figures up 13% on the same period last year as existing two and three year products came to an end and borrowers opted for new deals.
“Despite a boost in recent months, speculation of a base rate rise saw the market remain relatively subdued with year-on-year declines in activity among both first time buyers and homemovers as customers adopted a ‘wait and see’ approach.
“House price inflation has moderated in recent months yet it still remains above earnings growth, and so affordability is still a challenge for would-be borrowers.
“And although the full impact has yet to be felt, tax and regulatory changes continue to bear down on borrowing activity in the buy-to-let purchase market.”
Vikki Jefferies, proposition director at PRIMIS and PTFS, added: “Demand for remortgages continues to be a key theme and one that will only become more apparent in the wake of the Bank of England’s recent rate rise. These figures are not only testament to the hard work that brokers have done to educate their customers about the benefits of remortgaging, but also show that borrowers are eager to lock in favourable rates before any further rate rises.
“It would be great to see a rise in the number of first-time buyers next month as innovation in the mortgage market continues to heat up, making it easier for these borrowers to access the funds they need. Brokers and lenders are continuously looking for ways to simplify the mortgage process to ensure more people can get their foot onto the properly ladder – so watch this space.”