The number of remortgages in January 2018 reached a nine-year high
while the number of first-time buyers and home movers both
increased compared to the same period in the previous year, UK
Finance’s latest mortgage trends update reveals.
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There were 49,800 new homeowner remortgages
completed in January 2018, some 19.1 per cent more than in the
same month a year earlier. This is the highest monthly number
of remortgages since November 2008, when the figure stood at
51,300. The £8.9bn of remortgaging in January 2018 was 20.3 per
cent more year-on-year.
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There were 24,500 new first-time buyer
mortgages completed in January 2018, some 7 per cent more than
in the same month a year earlier. The £4bn of new lending
in the month was 11.1 per cent more year-on-year. The average
first-time buyer is 30 and has a gross household income of
£41,000.
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There were 25,000 new home mover mortgages
completed in January 2018, some 6.4 per cent more than in the
same month a year earlier. The £5.4bn of new lending in
the month was 10.2 per cent more year-on-year. The average home
mover is 39 and has a gross household income of
£55,000.
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There were 5,600 new buy-to-let house
purchase mortgages completed in January 2018, some 5.1 per cent
fewer than in the same month a year earlier. By value this was
£0.8bn of lending in the month, the same
year-on-year.
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There were 16,500 new buy-to-let remortgages
completed in January 2018, some 17.9 per cent more than in the
same month a year earlier. By value this was £2.6bn of
lending in the month, 18.2 per cent more
year-on-year.
Commenting on the data, Jackie
Bennett, Director of Mortgages at UK
Finance said:
“Remortgaging in January reached a nine-year
high, as a number of fixed rate mortgages came to an end while
borrowers locked into attractive deals amid expectations of
further interest rate rises.
“While an increase in remortgaging is expected
in the New Year as people put their household finances in order,
this strong growth is above the seasonal fluctuations we tend to
see at this time of year.
“There was the usual dip in both first-time
buyers and home-movers post the December festive period, but
mortgage lending in both segments increased compared to the same
period in 2017.4
“However, growth in the buy-to-let market
remains subdued, reflecting the ongoing impact of recent tax and
regulatory changes.”
