Mortgage lending for first-time buyers, home movers and buy to let purchases all fell in December 2017 compared to the previous year, UK Finance’s latest mortgage trends update reveals. However, 2017 overall saw the highest number of first-time buyers (365,000) since 2006.

  • There were 30,800 new first-time buyer mortgages completed in December, 5.2 per cent fewer than in the same month a year earlier. The £5.1bn of new lending in the month was 1.9 per cent down year-on-year. The average first-time buyer is 30 and has an income of £41,000.
  • 2017 overall saw 365,000 first-time buyers, the highest number since 2006. This is an annual increase of 7.4 per cent from 340,000 in 2016.
  • There were 30,700 new home mover mortgages completed in December, some 4.7 per cent fewer than in the same month a year earlier. The £6.5bn of new lending in the month was 3 per cent down year-on-year. The average home mover is 39 and has an income of £55,000.
  • There were 30,500 new homeowner remortgages completed in December, some 7.4 per cent more than in the same month a year earlier. The £5.2bn of remortgaging in the month was 8.3 per cent more year-on-year.
  • There were 5,300 new Buy to Let (BTL) house purchase mortgages completed in December, some 17.2 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 9,900 new BTL remortgages completed in December, some 11.6 per cent fewer than in the same month a year earlier. By value this was £1.6bn of lending in the month, 11.1 per cent down year-on-year.

Commenting on the data, Paul Smee, Head of Mortgages at UK Finance, said:

“2017 saw the number of first-time buyers reach its highest level in a decade, which is welcome news for those getting started on the housing ladder.

“But although the market remains competitive there is no room for complacency, with weaker December figures consistent with our market forecast of subdued growth this year.

“We are also seeing a less buoyant buy-to-let market, which continues to be impacted by recent tax and regulatory changes. This will continue to flatten gross lending volumes this year.”

Notes to Editor

  1. The full data, with infographics, is available below
  2. For more information please call the UK Finance press office on 020 7416 6750 or mail press@ukfinance.org.uk.
  3. The next update is due on 14 March 2018.
  4. UK Finance is a new trade association which was formed on 1 July 2017 to represent the finance and banking industry operating in the UK. It represents around 300 firms in the UK providing credit, banking, markets and payment-related services. The new organisation brings together most of the activities previously carried out by the Asset Based Finance Association, the British Bankers’ Association, the Council of Mortgage Lenders, Financial Fraud Action UK, Payments UK and the UK Cards Association.
  5. The data shown is estimates grossed up from the sample of lenders reporting to reflect total market size, based on total market volumes of Mortgage Product volumes of Mortgage Product Sales Data published by the FCA. Our historical figures are subject to revision as and when the FCA makes revisions to the market totals. The average figures shown are medians, as this tends to better represent the position of the typical borrower. Affordability calculations are based on median averages of calculations for individual transactions. Capital & interest payment calculations only include mortgages taken out on a full capital and interest repayment basis and are calculated based on the reported repayment term, interest rate, loan amount and income for each transaction.
  6. Data for mortgage lending in previous years is available on request.
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First-time buyers in 2017 reach decade-high but market cools in December
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