The residential remortgaging market has seen its strongest July in a decade, according to UK Finance's Mortgage Trends Updatee for July.
There were 46,900 new homeowner remortgages completed in the month, some 23.1% more than in the same month a year earlier. The £8.7bn of remortgaging in the month was 26.1% more year-on-year.
In addition, there were 32,600 new homemover mortgages completed in the month, some 3.8% fewer than in the same month a year earlier. The £7.3bn of new lending in the month was the same year-on-year. The average homemover is 39 and has a gross household income of £57,000.
The figures stated there were 31,400 new first-time buyer mortgages completed in the month, some 1% more than in the same month a year earlier. The £5.4bn of new lending in the month was 5.9% more year-on-year. The average first-time buyer is 30 and has a gross household income of £42,000.
There were 5,500 new buy-to-let home purchase mortgages completed in the month, some 14.1% fewer than in the same month a year earlier. By value this was £0.8bn of lending in the month, 11.1% down year-on-year.
Furthermore,14,700 new buy-to-let remortgages were completed in the month, some 7.3% more than in the same month a year earlier. By value this was £2.4bn of lending in the month, 9.1% more year-on-year.
Commenting on the data, UK Finance director of mortgages Jackie Bennett said: “The residential remortgaging market saw its strongest July in over a decade, as homeowners pre-empted the latest Bank of England rate rise by locking into attractive fixed-rate deals.
“There was also considerable growth in remortgaging in the buy-to-let sector, showing that while recent tax and regulatory changes are impacting on new purchases, many existing landlords remain in the market.
“The number of first-time buyers has returned to modest year-on-year growth. However, affordability remains a challenge for many prospective borrowers, underlining the importance of clarity over the future of schemes such as Help to Buy.”
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