Remortgaging activity remains high

• There were 34,900 new first-time buyer mortgages completed in the month, some 3.6 per cent fewer than in the same month a year earlier. The £5.8bn of new lending in the month was 1.7 per cent down year-on-year. The average first-time buyer is 30 and has a gross household income of £42,000.
• There were 33,700 new home mover mortgages completed in the month, some 7.9 per cent fewer than in the same month a year earlier.  The £7.3bn of new lending in the month was 6.4 per cent down year-on-year. The average home mover is 39 and has a gross household income of £56,000.
• There were 5,400 new buy-to-let (BTL) home purchase mortgages completed in the month, some 19.4 per cent fewer than in the same month a year earlier. By value, this was £0.8bn of lending in the month, 11.1 per cent down year-on-year.
• There were 12,600 new buy-to-let (BTL) remortgages completed in the month of June, the same as June 2017. 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 “Remortgaging continued to dominate in June with figures up 13 per cent on the same period last year as existing two and three-year products came to an end and borrowers opted for new deals.”

“Despite a boost in recent months, speculation of a base rate rise saw the market remain relatively subdued with year-on-year declines in activity among both first-time buyers and home movers as customers adopted a ‘wait and see’ approach. House price inflation has moderated in recent months yet it still remains above earnings growth, and so affordability is still a challenge for would-be borrowers. And although the full impact has yet to be felt, tax and regulatory changes continue to bear down on borrowing activity in the buy-to-let purchase market.”