Credit, Collections & Insolvency News
The number of first-time buyers in August reached the highest level since just before the financial crisis, according to the latest mortgage trends data by UK Finance, with 35,010 mortgage completions for new buyers – an increase of 0.7% on August last year. During the month there were 18,640 new remortgages with additional borrowing, down 2.9% on 2018, while the number of remortgages without additional lending slumped 2.3% to 18,100.
Commenting on the figures Dave Harris, CEO at equity release lender, more2life, comments on the latest UK Finance Mortgage Lending Trends said “Today’s figures suggest that more homeowners are taking a wait and see approach with first-time buyers leading the way for property transactions in August. That said, the remortgage market remains buoyant as homeowners looking to renovate their current homes rather than move or secure fixed rate deals.”
“For older homeowners in particular, a challenging housing market may mean that adapting their home is a more suitable way to meet their needs in retirement and sources of funding such as equity release can help make these home renovations a reality. In fact, almost two-thirds (61%) of more2lifecustomers have said they’ve taken out an equity release loan to fund home improvements – potentially to adapt their properties to meet their needs in later life.”
“However, for any older homeowners looking to improve and enhance the value of their home through equity release, advice is crucial. Specialist advisers are an integral part of the later life lending process and with their knowledge of the market they can help steer borrowers towards the best solution to meet their borrowing needs.”
Richard Pike, Phoebus Software Sales and marketing director, sais “We could have been forgiven for thinking that confidence had to be at an all time low as we got closer to 31stOctober. However, although figures in August were still lower than those in the same month in 2018, it is nonetheless pleasing to see that both the number and value of new mortgages were higher than in any month since last August.”
“There has to be something to be said for the fact that the economy actually grew over the summer and, despite recent failings such as Thomas Cook and Karen Millen, this shows that our economy does not rest solely on the retail industry. With unemployment at its lowest and real wage growth at an 11-year high, in the year to June, the reality is that people are still buying houses. And, there has probably never been a better time as lenders, including NatWest and Barclays, announce lower and more attractive deals. If getting the right deal is the main driver, no matter what the political landscape looks like, then this trend is likely to continue.”
