Mortgage lending to first-time buyers and home movers increased by both value and volume in August, according to the latest UK Finance data.
First-time buyers borrowed £5.7 billion, 16% more than in July and 12% more than in August 2016. They also took out 34,400 mortgages, 14% more than in July and 9% more year-on-year.
Lending to home movers increased 18% by value and 17% by volume on a monthly basis.
However there was a decline in both the number of people remortgaging and the value of lending, despite expectations of an upcoming rate rise.
The value of buy-to-let lending was unchanged but there was a small decrease in the number of buy-to-let borrowers remortgaging.
Remortgaging accounted for more than two-thirds (68%) of buy-to-let lending in August. Buy-to-let remortgaging was 5% lower than in July, but borrowing for house purchase increased by 11%. Overall, however, borrowing for house purchase by buy-to-let landlords remains at a lower level than before the introduction of the higher stamp duty rate in the spring of 2016.
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.”
Adapted from: Financial Reporter