A total 11,000 new first-time buyer mortgages were completed in London in the fourth quarter of 2018, 5.8% more than in the same quarter of 2017, according to latest figures published by UK Finance.
The £3.2bn of new lending was 7.4% more year-on-year. In 2018, there were 42,800 new first-time buyer mortgages, 0.5% more than in 2017. The £12.6bn of new lending was 2.6% more than in 2017.
There were 7,400 new homemover mortgages completed in London in the fourth quarter of 2018, 1.3% fewer than in the same quarter of 2017. The £3.1bn of new lending in the quarter was 3.3% more year-on-year. In 2018, there were 28,800 new homemover mortgages, 5% less than in 2017. The £12bn of new lending was 1.9% less than in 2017.
Statistics also showed that there were 15,000 new homeowner remortgages in London completed in the fourth quarter, 2.7% more than in the same quarter a year earlier. The £4.6bn of remortgaging in the fourth quarter was 1.8% more year-on-year.
In 2018, there were a total of 60,400 new homeowner remortgages, 6.2% more than in 2017. This is the highest annual number of remortgages in London since 2008 when this figure stood at 111,900. The £18.8bn of remortgaging in the year was 8.3% more than in 2017.
Responsible Lending managing director Keith Haggart said: “The key London property market is a story of two halves with more owner occupiers choosing to stay put while first-time buyers continue to grab government cash in ever greater numbers.
“Help to Buy lending, which we discovered this week has smashed through the £10bn milestone, continues to draw first-time buyers like moths to a flame.
“Owner occupiers on the other hand are being put off moving, having watched prices soften in the capital. Even though they may also be able to buy for less, falling prices are naturally encouraging people to sit it out and see if prices begin to recover, prompting another decline in homemover mortgages at the end of 2018.”
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