Homebuyers shake off winter blues with best February for homeowner purchases in a decade, says UK Finance

• There were 25,200 first-time buyer mortgages completed in February 2018, some 2.4 per cent more than in the same month a year earlier. The £4bn of new lending in the month was 2.6 per cent more year-on-year. The average first-time buyer is 30 with a gross household income of £41,000.            
                      
• There were 24,800 home mover mortgages completed in the month, the same as in February a year earlier. The £5.3bn of new lending in the month was 1.9 per cent more year-on-year. The average home mover is 39 and has a gross household income of £55,000.
   
• There were 35,400 homeowner remortgages completed in the month, some 11.3 per cent more than in the same month a year earlier. The £6bn of remortgaging in the month was 11.1 per cent more year-on-year.        
   
• There were 5,200 buy-to-let home purchase mortgages completed in the month, some 8.8 per cent fewer than in the same month a year earlier. By value this was £0.7bn of lending in the month, 12.5 per cent down year-on-year.
   
• There were 14,100 buy-to-let remortgages completed in the month, some 20.5 per cent more than in the same month a year earlier. By value this was £2.2bn of lending in the month, 15.8 per cent more year-on-year.

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

“Homebuyers have shaken off the winter blues, with purchases by first-time buyers and home movers reaching their highest levels for February in over a decade.

“Remortgages are also up year-on-year, as homeowners look to fix costs amid anticipation of further interest rate rises.

"Meanwhile the buy-to-let market continues to operate at stable but subdued levels, due in part to the impact of recent legislative and tax changes."

Ends

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

Notes to Editor

1. UK Finance is a trade association formed on 1 July 2017 to represent the finance and banking industry operating in the UK. It represents around 300 firms in the UK providing credit, banking, markets and payment-related services. The new organisation brings together most of the activities previously carried out by the Asset Based Finance Association, the British Bankers’ Association, the Council of Mortgage Lenders, Financial Fraud Action UK, Payments UK and the UK Cards Association.
                                      
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.