UK Finance: Remortgaging strengthens in July
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UK Finance data shows that lending for house purchases in July was
lower than in the preceding month but higher than a year earlier:
• First-time
buyers borrowed £5 billion, 15% lower than in June but 14% higher
than in July 2016. They took out 30,400 mortgages, down 16%
on the preceding month but up 8% year-on-year. ...Request free trial
UK Finance data shows that lending for house purchases in July was lower than in the preceding month but higher than a year earlier:
Commenting on the data, UK Finance’s Head of Mortgages Policy June Deasy said:
“Remortgaging strengthened in July and reached its highest level since January, with customers attracted by borrowing rates that are at or close to their historic low point. The increase in activity in July means that, over the last year, the number of people remortgaging has been at its highest since 2009.
“Lending for house purchase was lower in July than in the preceding month, and we expect the market to continue to soften a little in the coming months.”
Home owner house purchase and remortgaging in July 2017
On a seasonally adjusted basis, lending to first-time buyers and home movers declined modestly in value, although the number of loans was unchanged. The value and number of people remortgaging increased, and there was a smaller increase in both the value and volume of buy-to-let lending. (The full seasonally and non-seasonally adjusted data can be downloaded at the bottom of the page.)
The proportion of household income taken up by monthly mortgage payments nudged upwards in July for both first-time buyers (17.4%) and movers (17.6%). But it remained low by historical standards.
The average amount borrowed by a first-time buyer edged up from £138,750 in June to £139,000 in July. The average first-time buyer household income declined marginally, which means that their average income multiple nudged up from 3.59 to 3.60.
The average amount borrowed by movers was unchanged at £180,000,
as was their average income multiple of 3.39. Buy-to-let lending in July
Remortgaging accounted for more than 70% of all buy-to-let lending in July. Buy-to-let remortgaging was 10% higher than in June, but overall the sector continued to reflect the more subdued levels of activity seen since the introduction of higher stamp duty in the spring of 2016. Table 1: Number of loans for house purchase and remortgage
Table 2: Value of loans for house purchase and remortgage
Table 3: First-time buyer affordability measures
Table 4: Home mover affordability measures
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