Mortgage lending at highest level since 2007 - Business Finance

News

17 Apr

Mortgage lending at highest level since 2007

Mortgage lending for first-time buyers, home movers and remortgagors increased in February 2018 compared to the previous year according to UK Finance’s latest mortgage trends update.

Total homeowner house purchases, which combine both home movers and first-time buyers, reached 50,000, the highest level for February since 2007.

  • There were 25,200 new 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 new 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 new 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 new buy-to-let house 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 new 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, said: “Homebuyers have shaken off the winter blues, with house 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.”