19th January 2018

UK mortgage market activity buoyant during November 2017
Trend

UK Finance’s mortgage trends update for November 2017 reveals steady increases in mortgage lending for first-time buyers and home movers compared with the previous month and the equivalent period in 2016.

Key highlights:
• There were 34,800 new first-time buyer mortgages in the month, some 15.2 per cent more than in the same month a year earlier. The £5.6bn of new lending in the month was 16.7 per cent more year-on-year. The average first-time buyer is 30 and has an income of £40,000.
• There were 36,200 new home mover mortgages in the month, some 16.8 per cent more than in the same month a year earlier. The £7.5bn of new lending in the month was 19 per cent more year-on-year. The average home mover is 39 and has an income of £54,000.
• There were 38,400 new homeowner remortgages in the month, some 8.5 per cent more than in the same month a year earlier. The £6.5bn of remortgaging in the month was 10.2 per cent more year-on-year.
• There were 6,600 new buy-to-let house purchase mortgages in the month, some 1.5 per cent fewer than in the same month a year earlier. By value this was £0.9bn of lending in the month, the same year-on-year.
• There were 13,500 new buy-to-let remortgages in the month, some 3.6 per cent fewer than in the same month a year earlier. By value this was £2.1bn of lending in the month, 4.5 per cent down year-on-year.

Commenting on the data Paul Smee, Head of Mortgages at UK Finance, said: “The data show housing market activity remains buoyant, despite November’s rise in the base rate. Steady increases in lending for house purchases together with increases in homeowner remortgages reflect a keenness among consumers to benefit from still historically low interest rates, and a highly competitive marketplace.

“In contrast, declines in buy-to-let lending reflect the changing regulatory and fiscal environment for landlord businesses, where some landlords might be inclined to reappraise the viability of their portfolios.”