MORTGAGE TRENDS

September 12, 2018 by in category Mortgage News with 0 and 0

July 2018 was the strongest in homeowner remortgages in a decade.

However, figures from the Bank of England released yesterday, however, show that remortgaging as a proportion of new lending fell by 2.0 per cent on a quarterly basis.

With regard to first-time buyer activity, annual growth was up by 1 per cent, with 31,400 FTB mortgages completed at a total of £5.4bn, which is 5.9 per cent more in value than last year.

Whilst buy-to-let, purchase mortgages completed was down 14.1 per cent, and 11.1 per cent in value (at £800m), BTL remortgages were up 7.3 per cent, an increase of 9.1 per cent in value (£2.4bn).

There was considerable growth in remortgaging in the buy-to-let sector, showing that while recent tax and regulatory changes are impacting on new purchases, many existing landlords remain in the market.
And the level of remortgaging is not surprising given the imminent and well-signposted rise in interest rates.

It seems that although their numbers are rising, first-time buyers have been unable to take advantage of the reduction in buy-to-let activity. Homeowners have also been reluctant to jump into the market, even in the traditionally busier spring buying season.

There has been an increase in the number of mortgage products available with the number of products surpassing 5,000 for the first time in over a decade. Meanwhile, Government schemes like shared ownership and Help to Buy are giving thousands of first-time buyers that extra bit of support they need to secure their first home.

But we must be aware that the era of low interest rates will not last forever.

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THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.

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