Number of first-time buyers reaches 12-year high in 2018

UK Finance's Mortgage Trends Update for December 2018 reveals:

• There were 370,000 new first-time buyer mortgages completed in 2018, some 1.9 per cent more than in 2017. This is the highest number of first-time buyer mortgages since 2006, when this figure stood at 402,800. The £62 billion of new lending in the year was 4.9 per cent more than in 2017.

• There were 30,900 new first-time buyer mortgages completed in December 2018, some 1.6 per cent more than in the same month a year earlier. The £5.2 billion of new lending in the month was 4 per cent more year-on-year.
• There were 30,000 new homemover mortgages completed in December 2018, some 1.3 per cent fewer than in the same month a year earlier. The £6.5 billion of new lending in the month was the same year-on-year. In 2018, there were 367,800 new homemover mortgages completed, some 1.9 per cent less than in 2017. The £80 billion of new lending in the year was the same as in 2017.
• There were 34,000 new homeowner remortgages completed in December 2018, some 9.3 per cent more than in the same month a year earlier. The £6.1 billion of remortgaging in the month was 13 per cent more year-on-year. In 2018, there were 476,900 new homeowner remortgages completed, some 10.8 per cent more than in 2017. The £85 billion of new lending in the year was 13 per cent more than in 2017.
• There were 5,100 new buy-to-let home purchase mortgages completed in December 2018, some 5.6 per cent fewer than in the same month a year earlier. By value this was £0.7 billion of lending in the month, 12.5 per cent down year-on-year. In 2018, there were 66,400 new buy-to-let home purchases completed, some 11.5 per cent less than in 2017. The £9 billion of new lending in the year was 15 per cent less than in 2017.
• There were 12,400 new buy-to-let remortgages completed in December 2018, some 25.3 per cent more than in the same month a year earlier. By value this was £2.0 billion of lending in the month, 25 per cent more year-on-year. In 2018, there were 169,100 new buy-to-let remortgages completed, some 11.2 per cent more than in 2017. The £27 billion of new lending in the year was 11.6 per cent more than in 2017.

Commenting on the data, Jackie Bennett, Director of Mortgages at UK Finance said:                                                                                

"The mortgage industry helped 370,000 people buy their first home in 2018, the highest number in twelve years, as competitive deals and government schemes such as Help to Buy continue to boost the market.

"Homeowner remortgaging also saw strong growth driven by customers locking into attractive rates, a trend we expect to continue in 2019 as more fixed-rate mortgages come to an end.

"Demand for new buy-to-let purchases continues to be dampened by recent tax and regulatory changes. However, the number of buy-to-let remortgages reached a record high of almost 170,000 last year, suggesting many landlords remain committed to the market.”

Ends

For more information please call the UK Finance press office on 020 7416 6750 or email press@ukfinance.org.uk

Notes to Editor                                

1. UK Finance is the collective voice for the banking and finance industry. Representing more than 250 firms across the industry we help drive forward positive change to enhance standards, support customers and promote innovation.
    
2. The data shown is grossed up from the sample of lenders reporting to reflect total market size, based on total market volumes of Mortgage Product volumes of Mortgage Product Sales Data published by the FCA, so our historical figures are subject to revision as and when the FCA makes revisions to the market totals. The average figures shown are medians, as they tend to better represent the position of the typical borrower. Affordability measures are based on median averages of calculations for individual transactions. Capital & interest payment calculations only include mortgages taken out on a full capital and interest repayment basis and are calculated based on the reported repayment term, interest rate, loan amount and income for each transaction.         
3. Income metrics are presented on a gross household basis, as the sum of all income sources for all borrowers included in the affordability assessment.