The number of remortgages in January 2018 reached a nine-year high while the number of first-time buyers and home movers both increased compared to the same period in the previous year, UK Finance’s latest mortgage trends update reveals.

  • There were 49,800 new homeowner remortgages completed in January 2018, some 19.1 per cent more than in the same month a year earlier. This is the highest monthly number of remortgages since November 2008, when the figure stood at 51,300. The £8.9bn of remortgaging in January 2018 was 20.3 per cent more year-on-year.
  • There were 24,500 new first-time buyer mortgages completed in January 2018, some 7 per cent more than in the same month a year earlier.  The £4bn of new lending in the month was 11.1 per cent more year-on-year. The average first-time buyer is 30 and has a gross household income of £41,000.
  • There were 25,000 new home mover mortgages completed in January 2018, some 6.4 per cent more than in the same month a year earlier.  The £5.4bn of new lending in the month was 10.2 per cent more year-on-year. The average home mover is 39 and has a gross household income of £55,000.
  • There were 5,600 new buy-to-let house purchase mortgages completed in January 2018, some 5.1 per cent fewer than in the same month a year earlier. By value this was £0.8bn of lending in the month, the same year-on-year
  • There were 16,500 new buy-to-let remortgages completed in January 2018, some 17.9 per cent more than in the same month a year earlier.  By value this was £2.6bn of lending in the month, 18.2 per cent more year-on-year.

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

“Remortgaging in January reached a nine-year high, as a number of previous fixed rate mortgages came to an end while borrowers locked into attractive deals amid expectations of further interest rate rises.

“While an increase in remortgaging is expected in the New Year as people put their household finances in order, this strong growth is above the seasonal fluctuations we tend to see at this time of year.

“We saw the usual dip in both first-time buyers and home-movers post the December festive period, but mortgage lending in both segments increased compared to the same period in 2017.4

“However, growth in the buy-to-let market remains subdued, reflecting the ongoing impact of recent tax and regulatory changes.”

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 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.
  3. 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.
  4. The number of first-time buyers and Home Movers tend to see a seasonal dip in January. Previous UK Finance figures show the number of first-time buyers went from 29,600 to 21,300 in Dec-Jan 2016, and from 32,500 to 22,900 in Dec-Jan 2017.
  5. 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)
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Remortgages reach nine-year high in January 2018
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