First-time buyers in London reach highest level since 2015

There were 11,700 new first-time buyer mortgages completed in London during the third quarter of 2018, illustrating a 2.6% increase on the same period las year, figures from UK Finance have revealed.

The association found that the £3.55bn of new lending in the quarter had risen by 6% year-on-year, with the average first-time buyer in the capital being 32 and having a gross household income of £70,000.

When looking at homemover statistics in London, there were 8,100 new mortgages completed in Q3 2018, with this figure actually being some 4.7% lower than in Q3 2017. However, despite the drop in volume, the £3.49bn of new lending in the quarter was 0.3% more year-on-year.

In London, the average homemover is 37 and possesses a gross household income of £95,000.

Homeowner remortgages in London also experienced an increase, as Londoners’ take advantage of the low interest rate environment. The number of homeowner remortgages in the capital increased by 3.4% when compared to last year’s figure, with 15,200 being completed in Q3 2018. The £4.76bn of remortgaging in the period was 4.6% more year-on-year.

Commenting on the findings, UK Finance director of mortgages Jackie Bennett said: “London’s mortgage market remained resilient in the third quarter of this year, despite an uncertain economic environment.

“The number of first-time buyers in the capital reached its highest level in three years, boosted by schemes such as Help to Buy. The recent extension of the scheme until 2023 will help even more people get a foot on the housing ladder in the years ahead.

“Remortgaging continues to be strong, reflecting the large number of fixed rate loans coming to an end as well as customers desire to lock into new competitive rates.”

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