Remortgaging levels rise year-on-year

18th October 2017

Data from UK Finance shows that lending for house purchase was higher month-on-month and year-on-year in August.

First-time buyers borrowed £5.7 billion, up 16% compared with July and 12% compared with August 2016. First-time buyers took out 34,400 mortgages, up 14% month-on-month and 9% year-on-year.

Home movers borrowed £8.4 billion, 18% higher than in July and 20% higher than in August 2016. Home movers took out 38,500 loans, up 17% month-on-month and 13% year-on-year.

Remortgaging by homeowners totalled £6.4 billion, down 4% month-on-month, but up 8% more year-on-year. Remortgage homeowners took out 36,700 loans, down 1% compared with July, but up 5% compared with August 2016.

Buy-to-let lending totalled £3.1 billion, down 3% compared with July and flat with August 2016. This equated to 20,400 mortgages; flat with July but up 4% compared with August last year. Remortgaging accounted for 68% of buy-to-let lending in August, but buy-to-let remortgage activity was down 5% compared with July.

UK Finance’s head of mortgages policy, June Deasy, said: “Activity picked up in August, and recent resilience ensured that borrowing by home movers was at its highest since March 2016, when transactions were boosted by an imminent increase in stamp duty.

“Over the last 12 months, the number of people remortaging has been higher than in any period since late 2009. With mortgage rates close to historic lows and the likelihood of a rise in official rates moving closer, the popularity of remortgaging looks set to continue.”

*2 year fixed with TSB 1.09% then 3.59% - APRC is 3.3% Max LTV is 60%. Quoted on 27th May 2020.