UK Finance’s latest Mortgage Trends Update for August 2018 reveals:

  • There were 35,500 new first-time buyer mortgages completed in the month, some 2 per cent more than in the same month a year earlier. The £6.1bn of new lending in the month was 5.2 per cent more year-on-year.  The average first-time buyer is 30 and has a gross household income of £42,000.
  • There were 38,000 new homemover mortgages completed in the month, some 2.3 per cent fewer than in the same month a year earlier. The £8.5bn of new lending in the month was the same year-on-year. The average homemover is 39 and has a gross household income of £57,000.
  • There were 37,100 new homeowner remortgages completed in the month, some 0.3 per cent fewer than in the same month a year earlier. The £6.5bn of remortgaging in the month was the same year-on-year.
  • There were 6,000 new buy-to-let home purchase mortgages completed in the month, some 13 per cent fewer than in the same month a year earlier. By value this was £0.8bn of lending in the month, 20 per cent down year-on-year.
  • There were 13,800 new buy-to-let remortgages completed in the month, some 4.5 per cent more than in the same month a year earlier. By value this was £2.2bn of lending in the month, 4.8 per cent more year-on-year.

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

“Overall house purchase completions remain stable, driven largely by the number of first-time buyers which reached its highest monthly level since June 2017.

“Buy to Let remortgaging saw relatively strong growth in August, due in part to the number of two year fixed deals coming to an end. This suggests that while new purchases in the buy-to-let market continue to be impacted by recent tax and regulatory changes, many existing landlords remain committed to the market.

“However, the homeowner remortgaging market has softened slightly, reflecting the many borrowers who had already locked into attractive deals in the months preceding the Bank of England’s base rate rise.”

Notes to Editor

  1. 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 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.
  2. 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.
  3. 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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Number of first-time buyers reaches its highest level since June 2017
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