First time buyers handed the mortgage market a boost in July, according to the latest figures from UK Finance.
There were 32,640 new first-time buyer mortgages completed in July 2019, a 5.8% increase compared with July 2018. There were 32,710 homemover mortgages completed in July 2019, 1.4% more than last year.
There were 5,800 new buy-to-let home purchase mortgages completed in July 2019, a 5.5% increase, there were also 15,100 remortgages in the sector, a 2% increase.
There were 20,760 new remortgages with additional borrowing, 7.1% fewer than in the same month in 2018, driven in part by a fall in the number of fixed-rate mortgages coming to an end and the growing popularity of product transfers.
Of these remortgages, the average additional amount borrowed was £55,500. There were 20,380 new pound-for-pound remortgages (with no additional borrowing) in July 2019, 12.9% lower.
Shepherd Ncube, founder and CEO of Springbok Properties, said: “Strong buyer demand is continuing to drive the UK property market and this is being led by our army of aspirational first-time buyers, which is great to see.
“Undeterred by Brexit angst and spurred on by the dream of homeownership, this demand has been fuelled by the continued affordability of mortgage products, a wider slow in the rate of house price growth and a steady uplift in earnings. All of which have combined to create almost ideal conditions to take that first step on the ladder.”
Colby Short, founder and CEO of GetAgent.co.uk, added: “We’ve seen a significant drop in the number of homeowners choosing to remortgage on a property and this has again been driven by the current climate of mortgage affordability and the wealth of alternative products on the market tempting homeowners with a more appetising offering.
“All in all, very positive and once this sentiment trickles through to the business end of the market, we should see a greater degree of stability return with an uplift in both transactions and property values.”