Key data highlights:

  • 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 homemover 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 37,400 new homeowner remortgages completed in the month, some 8.4 per cent more than in the same month a year earlier. The £6.8bn of remortgaging in the month was 13.3 per cent up year-on-year.
  • 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 borrowing 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 homemovers 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.”

Notes to Editor

  1. For more information please call the UK Finance press office on 020 7416 6750 or mail press@ukfinance.org.uk.
  2. UK Finance is a trade association which was formed on 1 July 2017 to represent the finance and banking industry operating in the UK. It represents around 250 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.
  3. The data shown is 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, so 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 they tend to better represent the position of the typical borrower. Affordability measures 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.
  4. Income metrics are presented on a gross household basis, as the sum of all income sources for all borrowers included in the affordability assessment.
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House purchase activity slows in June but remortgaging activity remains high
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