Remortgaging growth continues

Latest figures from UK Finance’s Mortgage Trends update for Quarter 2 2018 show a continued growth for UK remortgaging with London remortgaging activity reaching a nine-year high.

Commenting on the data, Jackie Bennett, Director of Mortgages at UK Finance, said “Remortgaging in London reached its highest level in nine years in the second quarter of this year, as homeowners locked into competitive deals amid anticipation of the recent base rate rise.“House purchase activity has slowed slightly, with affordability remaining a challenge for many would-be borrowers. This underlines the need for clarity over the future of the Help to Buy scheme after 2021.”

Remortgaging in Scotland also continues to grow. Commenting on the data, Douglas Cochrane, chair of UK Finance’s Scotland Mortgage Committee, said “The Scottish mortgage market continues to be driven by strong remortgaging activity, with customers locking into attractive deals in anticipation of the recent base rate rise. The number of first-time buyers has bounced back from the previous quarter, but remains slightly down compared to the same period last year. This reflects continued affordability pressures facing many prospective buyers.“While the current funding commitment to Help to Buy in Scotland is welcome, clarity over the scheme’s future after 2021 is now needed.”

Remortgaging in Wales also remained strong. Julie-Ann Haines, chair of UK Finance’s Wales Mortgage Committee, said “Remortgaging activity remained strong in Wales, as homeowners took advantage of attractive deals and competitive rates in anticipation of the recent Bank of England rate rise. However, house purchase activity has slowed, with affordability a challenge for some prospective buyers.”

Northern Ireland also saw remortgaging growth. Derek Wilson, chair of UK Finance’s Northern Ireland Mortgage Committee, said “The Northern Ireland mortgage market continues to perform strongly and has returned to the levels of consistent growth last seen in the early 2000s. Lending to first-time buyers has overtaken remortgaging as the largest sector by value, reversing the position in the last quarter, as borrowers take advantage of what remains the UK’s most affordable region.

“With the number of first-time buyers reaching a 12 year high, it will be important to increase the supply of new homes to match this growing demand.”

UK Finance’s Mortgage Trends update for Quarter 2 2018 overview:

There were 15,200 new homeowner remortgages in London completed in the second quarter, some 16.9 per cent more than in the same quarter a year earlier. The £4.84bn of remortgaging in the second quarter was 23.2 per cent more year-on-year.
There were 6,800 new homemover mortgages completed in London in the second quarter of 2018, some 8.1 per cent fewer than in the same quarter of 2017. The £2.77bn of new lending in the quarter was 8.6 per cent down year-on-year. The average homemover in the capital is 37 and has a gross household income of £92,000.
There were 10,300 new first-time buyer mortgages completed in London in the second quarter of 2018, some 3.7 per cent fewer than in the same quarter of 2017. The £3.04bn of new lending was 1.9 per cent down year-on-year. The average first-time buyer in the capital is 32 and has a gross household income of £68,000.
There were 8,100 new Scottish homeowner remortgages completed in the second quarter, some 9.5 per cent more than in the same quarter a year earlier. The £1.01bn of remortgaging in the second quarter was 11 per cent more year-on-year.

There were 9,200 new homemover mortgages completed in Scotland in the second quarter of 2018, some 2.1 per cent fewer than in the same quarter of 2017. The £1.46bn of new lending in the quarter was the same year-on-year. The average Scottish homemover is 39 and has a gross household income of £52,000.
There were 9,300 new first-time buyer mortgages completed in Scotland in the second quarter of 2018, some 3.1 per cent fewer than in the same quarter of 2017. The £1.1bn of new lending was 2.8 per cent more year-on-year. The average Scottish first-time buyer is 29 and has a gross household income of £35,000.
There were 4,800 new Welsh homeowner remortgages completed in the second quarter, some 17.1 per cent more than in the same quarter a year earlier. The £0.57bn of remortgaging in the second quarter was 18.8 per cent more year-on-year.

There were 3,800 new homemover mortgages completed in Wales in the second quarter of 2018, some 2.6 per cent fewer than in the same quarter of 2017. The £0.57bn of new lending in the quarter was 1.7 per cent down year-on-year. The average Welsh homemover is 39 and has a gross household income of £47,000.
There were 4,100 new first-time buyer mortgages completed in Wales in the second quarter of 2018, some 2.4 per cent fewer than in the same quarter of 2017. The £0.48bn of new lending was 2 per cent down year-on-year. The average Welsh first-time buyer is 29 and has a gross household income of £35,000.

There were 2,700 new first-time buyer mortgages completed in Northern Ireland in the second quarter of 2018, some 12.5 per cent more than in the same quarter of 2017 and the highest quarterly level since 2005. The £0.28bn of new lending was 16.7 per cent more year-on-year. The average Northern Ireland first-time buyer is 30 and has a gross household income of £33,000.
There were 1,600 new homemover mortgages completed in Northern Ireland in the second quarter of 2018, some 6.7 per cent more than in the same quarter of 2017. The £0.21bn of new lending in the quarter was 10.5 per cent more year-on-year. The average Northern Ireland homemover is 39 and has a gross household income of £46,000.
There were 2,300 new homeowner remortgages in Northern Ireland completed in the second quarter, some 9.5 per cent more than in the same quarter a year earlier. The £0.25bn of remortgaging in the second quarter was 13.6 per cent more year-on-year.

Remortgaging growth continues

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