First-time buyer market ‘flying’

A total of 35,010 new first-time buyer mortgages were completed in August 2019, 0.7% more than in the same month in 2018, and the highest monthly total since August 2007 when there were 35,070 new first-time buyer mortgages.

According to UK Finance, there were 35,380 homemover mortgages completed in August 2019, 5.5% fewer than in the same month a year earlier.

There were 18,640 new remortgages with additional borrowing in August 2019, 2.9% fewer than in the same month in 2018. For these remortgages, the average additional amount borrowed in August was £55,000. There were 18,100 new pound pound-for-pound remortgages (with no additional borrowing) in August 2019, 2.3 per cent fewer than in the same month a year earlier.

Latest statistics have also shown that there were 5,900 new buy-to-let home purchase mortgages completed in August 2019, 3.3% fewer than the same month a year earlier. There were 13,800 remortgages in the buy-to-let sector, 0.7% fewer than the same month in 2018.

Coreco managing director Andrew Montlake stated: “First time buyers are absolutely flying. They are being driven on by a combination of reduced competition from landlords, once-in-a-lifetime mortgages rates, high employment and the buyers’ market we’re in.

“First time buyers have been the one constant over the past couple of years and this latest data shows that there is still a huge amount of momentum at this end of the market.

“Despite a continued backdrop of political, economic and constitutional chaos, first time buyers know that the conditions to buy are perfect. Those supported by the Bank of Mum and Dad are in an even better position.

"Many are also concerned that the market could turn against them if a Brexit deal is achieved and are buying now to avoid that scenario."

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