Number of first-time buyer loans climbs

Number of first-time buyer loans climbs

Wednesday, April 17, 2019

The number of first-time buyers receiving mortgages in February was higher year on year for the fifth month in a row, according to UK Finance.

The trade association said 24,880 new first-time buyer mortgages were completed in February, 4.1 per cent more than in the same month in 2018.

In February there were an additional 23,660 mortgages handed out to home-movers, a slight year-on-year increase of 0.1 per cent.

UK Finance said this is the fifth month in a row of year on year growth in first-time buyers, while home-mover numbers are at around the same levels they were at this time last year.

Re-mortgaging levels also increased in February compared to the previous year.

There were 18,200 new re-mortgage loans where additional amounts were borrowed in February, 10 per cent more than in the same month in 2018.

The average amount taken out for these re-mortgages in February was £52,000.

There were 18,360 re-mortgages with no extra borrowing, 7.8 per cent more than in the same period last year.

The average loan-to-value (LTV) ratio in the re-mortgaging market was 57 per cent, considerably lower than the average LTV ratio of 72 per cent for mortgages taken out by home-buyers.

There were 4,800 new buy-to-let home purchase mortgages completed in February 2019, 7.7 per cent down on the same month in 2018.

UK Finance said, while buy-to-let house purchases continue to contract due to tax and regulatory changes, buy-to-let re-mortgaging has been increasing as borrowers lock into new attractive rates.

Reporting by Wesley Hudson. 

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