First-time buyer sector booms as re-mortgages fall
The number of first-time buyer mortgage completions grew by 5.8 per cent to 32,640 in July, compared to the same month in 2018, according to figures from UK Finance.
Growth was more muted for home-movers, up only 1.4 per cent to 32,710.
In remortgages, the number of completions dipped compared to July 2018. The count of remortgages with new borrowing fell 7.1 per cent to 20,760 and remortgages with no new borrowing dropped 12.9 per cent to 20,380.
The average amount of new borrowing recorded was £55,500 for the month.
The number of buy-to-let (BTL) purchases increased by 5.5 per cent to 5,800 and buy-to-let (BTL) remortgages grew 2 per cent to 15,100.
“The figures show first-time buyers taking advantage of the sluggish housing market ladder and that home-owners are remortgaging rather than moving,” said Dave Harris, chief executive at More2Life.
“In remortgages, lenders are competing intensely with deals for home-owners who are choosing to stay put,” said Steve Seal, managing director of Bluestone Mortgages.
The average loan size for a first-time buyer was £174,914, the average income multiple 3.52 and the average age of the borrower 32.
First-time buyer loan to values (LTVs) averaged 77.9 per cent, a small rise on 77.4 per cent in July 2018.
For home-movers, average loan sizes were £231,603, average income multiples 3.3 and the average age of borrower 41. The average LTV was 67.3 per cent, a rise on 66.1 per cent in July 2018.
In remortgages, average loan sizes were £178,553, average income multiples 2.74 and the average age 42. The average loan to value (LTV) for a remortgage was 57.5 per cent, down from 58.7 per cent in July 2018.
The data was taken from UK Finance’s UK Finance Regulated Mortgage Survey.