Mortgage market softens following period of strong growth

Mortgage market softens following period of strong growth with fewer home-mover mortgages and remortgages, and first-time buyer mortgages.

Key data highlights:
  • There were 29,400 new first-time buyer mortgages completed in the month, some 4.5 per cent fewer than in the same month a year earlier. The £5.0bn of new lending in the month was the same year-on-year. The average first-time buyer is 30 and has a gross household income of £42,000.
  • There were 29,400 new homemover mortgages completed in the month, some 8.4 per cent fewer than in the same month a year earlier. The £6.5bn of new lending in the month was 5.8 per cent down year-on-year. The average home mover is 39 and has a gross household income of £56,000.
  • There were 35,600 new homeowner remortgages completed in the month, some 0.6 per cent fewer than in the same month a year earlier. The £6.4bn of remortgaging in the month was 1.5 per cent down year-on-year.
  • There were 5,200 new buy-to-let home purchase mortgages completed in the month, some 18.8 per cent fewer than in the same month a year earlier. By value this was £0.7bn of lending in the month, 22.2 per cent down year-on-year.
  • There were 12,300 new buy-to-let remortgages completed in the month, some 0.8 per cent fewer than in the same month a year earlier. By value this was £2.0bn of lending in the month, the same year-on-year.
Commenting on the data, Jackie Bennett, Director of Mortgages at UK Finance said:

“Overall remortgaging for both residential and buy-to-let properties have levelled out after a period of strong growth. This reflects the number of fixed rate loans reaching maturity.

“Buy-to-let home purchases have eased again in September, suggesting lending in this market remains subdued as a result of recent tax, regulatory and legislative changes.

“Demand for house purchases for both first-time buyers and homemovers has also lessened, as affordability constraints continue to bear down on consumer demand for new loans particularly in London and the South East”.

 

Kindly shared by UK Finance