UK Finance’s Mortgage Trends in London Update for Quarter 2 2018 reveals:
- 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.
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.”
Notes to Editor
- UK Finance is a trade association 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.
- 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.