Mortgage lending has gone up across the majority of the sector, according to the new Mortgage Trends Update released by UK Finance.

There were 32,640 new first-time buyer mortgages completed in July 2019, 5.8% more than in the same month in 2018. There were also 32,710 home mover mortgages completed, a 1.4% rise in the same period.

Meanwhile, there were 5,800 new buy-to-let home purchase mortgages completed in July 2019, 5.5% more than this time last year. And there were 15,100 remortgages in the buy-to-let segment, an increase of 2.0% since July 2018.

The only area of the sector where growth stalled was in remortgaging for owner-occupiers. There were 20,760 new remortgages with additional borrowing in July, 7.1% fewer than in the same month last year. For these latest remortgages, the average additional amount borrowed was £55,500.

There were also 20,380 new pound-for-pound remortgages (with no additional borrowing) – an annual drop of 12.9%. UK Finance noted that this was driven in part by a fall in the number of fixed-rate mortgages coming to an end and the growing popularity of product transfers.

Commenting on today’s figures, TMA’s director of mortgage services, David Copland, said: “On the whole, this summer has been encouraging for the mortgage market. Lending activity remained steady whilst borrowers continued to reap the benefits of deals and initiatives geared towards their needs. In particular, we saw the outlook for first-time buyers brighten even further as their numbers reached the highest level in over two decades.

“The remortgage market is also showing growth potential,” he continued. “Recent market data suggests that over £77.5bn of residential and buy-to-let terms are set to mature between now and the end of the year. This makes it the perfect time for advisers to re-engage with any customers who are approaching the end of their terms to make sure they are on the best deal possible.”

Masthaven’s sales director, Rob Barnard, added: “While political uncertainty may be impacting house price growth, the upward trend in home purchases highlights that the mortgage market is weathering the storm. However, with the end of the Help to Buy Scheme in 2023 and no signs of the end of the current political disruption, there is an onus on the market to provide solutions such as increased product innovation and incentives to encourage would-be buyers to take the next steps on to, or up, the property ladder.”

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