You are here: Home - Mortgages - Buy To Let - News -

Double-digit drop in remortgagors and buy-to-let buyers in March

0
Written by: Christina Hoghton
16/05/2018
Fewer borrowers chose to switch their mortgage while the number of landlords buying dropped 20%, according to the latest figures.

Remortgaging levels softened after a busy start to the year, according to UK Finance.

In March there was £5.6bn of remortgaging, 9.7% down year-on-year. There were 32,400 new homeowner remortgages completed in the month, some 12% fewer than in the same month a year earlier.

Buy-to-let purchase business fell more significantly. There were 5,500 new buy-to-let home purchase mortgages completed in the month, 19% fewer than in the same month a year earlier. By value this was £0.8bn of lending, 20% down year-on-year.

UK Finance said the recent softening of the buy-to-let market is mostly down to a number of recent tax and regulatory changes, including the limiting of landlords’ Mortgage Interest Tax Relief (MITR), the 3% Stamp Duty surcharge and new underwriting requirements introduced by the Prudential Regulatory Authority (PRA).

Small boosts

First-time buyer lending held up better with a small increase in lending by value, despite fewer first-time buyers actually taking out deals. There was £5.1bn of new lending to first-time buyers in the month, up 2% year-on-year. 31,200 new first-time buyer mortgages were completed in the month, some 1.9% fewer than in the same month a year earlier. The average first-time buyer is 30 and has a gross household income of £42,000.

Jackie Bennett, director of mortgages at UK Finance, said: “Remortgaging levels softened in March, after a busier than usual start to the year saw customers locking into attractive deals ahead of a potential interest rate rise.

“There has been relatively flat growth in lending to first-time buyers, reflecting recent Bank of England figures showing a fall in mortgage approvals.

“Meanwhile the buy-to-let market remains subdued, as recent tax and regulatory changes continue to have an impact on demand.”

Separate figures from the Bank of England show that gross mortgage lending in the first quarter of 2018 was £61.1 billion, up 3.4% from £59.0 billion in the first quarter of 2017.

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

Which ISA is right for you? A round up of the six products available in 2017

From cash to innovative finance to lifetime, here's our guide to the ISA products available to savers this yea...

Guide to buy-to-let tax changes

In late 2015, former Chancellor George Osborne announced a range of  tax measures aimed at landlords, which t...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Five fund tips for a 0.25% interest rate environment

With interest rates stuck at a record low 0.25% and expectations rates could fall to close to zero, here are ...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Investing your money

Alliance Trust Plc gives you smart insight into how to invest your money

Money Tips of the Week

Read previous post:
buying a house
Renters need £185,000 extra in retirement

Those still renting by the time they retire will need an extra £185,000 in their pension pots, according to research...

Close