You are here: Home - Mortgages - First Time Buyer - News -

First-time buyer sector booms as re-mortgages fall

0
Written by:
17/09/2019
First-time buyers continued to drive the mortgage market over the summer months, new data shows.

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.

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.

Autumn Statement: Everything you need to know at a glance

Yesterday Chancellor Jeremy Hunt made his first fiscal statement in the role, outlining a range of tax measure...

End of Help to Buy: 10 alternatives for first-time buyers

The deadline for Help to Buy Equity Loan applications passed on 31 October. If you’re a first-time buyer who...

Moving to an energy prepayment meter: Everything you need to know

As households struggle with the soaring cost of energy, tens of thousands of billpayers are expected to move o...

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.

DIY investors: 10 common mistakes to avoid

For those without the help and experience of an adviser, here are 10 common DIY investor mistakes to avoid.

Mortgage down-valuations: Tips to avoid pulling out of a house sale

Down-valuations are on the rise. So, what does it mean for home buyers, and what can you do?

Five tips for surviving a bear market mauling

The S&P 500 has slipped into bear market territory and for UK investors, the FTSE 250 is also on the edge. Her...

Money Tips of the Week