Fall In Number Of New Purchase Mortgages In June
According to data published by UK Finance, there was a fall in the number of new mortgages completed for house purchases in June 2018. Let us have a look at some of the statistics that our readers should find of interest.
In June, there were 33,700 mortgages completed relating to homeowners who were moving property. That is a fall of 7.9% when compared with June 2017 which is a sizeable figure. Therefore, it will come as no surprise to read that there was a fall in the amount lent to £7.3 billion – a drop of 6.4%. It is interesting that the age of the average person moving home is 39.
Looking at first time buyers, there was also a fall in the number of mortgages completed in June 2018. There was a drop of 3.6% to 34,900 when compared with the same month last year. Also, there was a fall 1.7% in the amount lent to £5.8 billion when comparing June 2018 with June 2017. The average first time buyer age was 30.
The number of remortgages bucked the trend with 37,400 completing in June 2018 with this being 8.4% more than a year ago. There was a rise of 13.3% in the amount lent to £6.8 billion.
There was a big drop in people completing on buy to let mortgages for new purchases in June 2018. 5,400 such mortgages completed with this being over 19% less than in June 2017. New buy to let remortgages were the same in June 2018 as in June 2017 – 12,600.
It will be interesting to see what impact, if any, the recent increase in the base rate will have on the number of residential mortgages being completed in the next few months and beyond. With the amount being borrowed by many people these days even a quarter percentage increase in rates can have a significant impact on someone’s household expenditure. We will continue to provide updates periodically about the above data.