First-time buyers in London reach highest level since 2015

Key data highlights:

There were 11,700 new first-time buyer mortgages completed in London in the third quarter of 2018, some 2.6 per cent more than in the same quarter of 2017. The £3.55bn of new lending was 6 per cent more year-on-year. The average first-time buyer in the capital is 32 and has a gross household income of £70,000.
There were 8,100 new homemover mortgages completed in London in the third quarter of 2018, some 4.7 per cent fewer than in the same quarter of 2017. The £3.49bn of new lending in the quarter was 0.3 per cent more year-on-year. The average homemover in the capital is 37 and has a gross household income of £95,000.
There were 15,200 new homeowner remortgages in London completed in the third quarter, some 3.4 per cent more than in the same quarter a year earlier. The £4.76bn of remortgaging in the third quarter was 4.6 per cent more year-on-year.

Commenting on the data, Jackie Bennett, Director of Mortgages at UK Finance, said:

London's mortgage market remained resilient in the third quarter of this year, despite an uncertain economic environment.

The number of first-time buyers in the capital reached its highest level in three years, boosted by schemes such as Help to Buy. The recent extension of the scheme until 2023 will help even more people get a foot on the housing ladder in the years ahead.

Remortgaging continues to be strong, reflecting the large number of fixed rate loans coming to an end as well as customers desire to lock into new competitive rates.

Area of expertise:

Mortgages Personal banking

Notes to editor

<ol><li>For more information please call the UK Finance press office on 020 7416 6750 or mail <a href="mailto:press@ukfinance.org.uk">press@ukfinance.org.uk</a>.</li>
<li>UK Finance is the trade association formed on 1 July 2017 to represent the banking and finance industry operating in the UK. It represents more than 250 firms in the UK providing credit, banking, markets and payment-related services. The 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.</li>
<li>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.</li>
<li>The income for a first time buyer is calculated on the basis of gross household income. (The sum of occupants living in a household ? joint or single).</li>
</ol>

Tags:

England First-time buyers Housing market