Number of first time buyer mortgages rises 15% in November

UK Finance’s mortgage trends update for November 2017 reveals steady increases in mortgages for first-time-buyers and home movers compared to the previous month and the equivalent period in 2016.

Key data highlights:

• There were 34,800 new first-time buyer mortgages in the month, some 15.2 per cent more than in the same month a year earlier. The £5.6bn of new lending in the month was 16.7 per cent more year-on-year. The average first-time buyer is 30 and has an income of £40,000.
• There were 36,200 new home mover mortgages in the month, some 16.8 per cent more than in the same month a year earlier. The £7.5bn of new lending in the month was 19 per cent more year-on-year. The average home mover is 39 and has an income of £54,000.
• There were 38,400 new homeowner remortgages in the month, some 8.5 per cent more than in the same month a year earlier. The £6.5bn of remortgaging in the month was 10.2 per cent more year-on-year.
• There were 6,600 new BTL house purchase mortgages in the month, some 1.5 per cent fewer than in the same month a year earlier. By value this was £0.9bn of lending in the month, the same year-on-year.
• There were 13,500 new BTL remortgages in the month, some 3.6 per cent fewer than in the same month a year earlier. By value this was £2.1bn of lending in the month, 4.5 per cent down year-on-year.

Paul Smee, Head of Mortgages at UK Finance said, “The data shows housing market activity remains buoyant, despite November’s rise in the base rate. Steady increases in lending for house purchases together with increases in homeowner remortgages reflect a keenness among consumers to benefit from still historically low interest rates, and a highly competitive marketplace.

“In contrast, declines in buy-to-let lending reflect the changing regulatory and fiscal environment for landlord businesses, where some landlords might be inclined to reappraise the viability of their portfolios.”