1.6% growth in FTB mortgages from last year

There were 29,100 new FTB mortgages completed in September 2019, 1.6% more than in the same month in 2018, new UK Finance data revealed.

In its latest release of mortgage lending trends data, UK Finance announced there were 29,050 home mover mortgages completed in September 2019, which was 1.8% more than in the same month a year earlier.

The data also showed there were 5,500 new BTL home purchase mortgages completed in September – 3.5% fewer than this time last year – and there were 12,900 remortgages in the BTL sector, which was the same amount as in September 2018.

Commenting on the latest data and its impact on the equity release sector, more2life CEO, Dave Harris, said: “Many parents are passing on their property wealth to their children to help them fund a house purchase, which is driving interest in the equity release sector. Our own data shows that 25% of our customers are gifting some or all their equity to friends and family once it has been released.

“The number of equity release products which enable retirees to pass on their housing wealth as a ‘living inheritance’ is growing. Recent stats from the Equity Release Council show that the number of lifetime mortgages with an inheritance guarantee increased by 88% year-on-year in 2019.

“With more of these deals on the market, increasing numbers of retirees will be able to fund their own lifestyles and unlock housing wealth for their children.”

The UK Finance data also showed that there were 17,740 new remortgages with additional borrowing in September 2019 – 5.9% more than in the same month in 2018.

For these remortgages, UK Finance found the average additional amount borrowed in September was £50,000.

Smartr365 CEO, Conor Murphy, commented: “Strong mortgage figures are mainly down to the remortgage market, with competition between lenders aiming to attract as much business as possible underpinning performance.

“For brokers, where there is competition there is also opportunity. As borrowers remortgage to take advantage of the lowest rates the industry has seen in years, most will be looking for advice to help them find the best deal.”

Furthermore, the latest data revealed there were 19,140 new pound-for-pound remortgages – with no additional borrowing – in September 2019. This was 8% more than in September 2018.

CEO of conveyancing solutions provider LMS, Nick Chadbourne, added: “Lower rates on 2-year deals have sparked competition between lenders, aiming to turn the heads of remortgagers, and borrowers have been taking advantage.

“Recent LMS data shows that although 5-year fixes remain the most popular product, purchases of 2-year deals have surged and closed the gap to just a few per cent.

“It’s tough to call whether this will continue as we move into the new year, but with low rates and slow price growth set to stay, we can be sure that the remortgage market is in good health.”

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