UK Finance has revealed that there were 29,100 new first-time buyer mortgages completed in September 2019, 1.6% more than in the same month in 2018.
There were 29,050 homemover mortgages completed in September 2019, 1.8% more than in the same month a year earlier.
In addition, there were 17,740 new remortgages with additional borrowing in September 2019, 5.9% more than in the same month in 2018. For these remortgages, the average additional amount borrowed in September was £50,000.
There were 19,140 new pound-for-pound remortgages (with no additional borrowing) in September 2019, 8% more than in September 2018.
Meanwhile, there were 5,500 new buy-to-let home purchase mortgages completed in September 2019, 3.5% fewer than this time last year. There were 12,900 remortgages in the buy-to-let sector, the same amount as in September 2018.
Adrian Moloney, sales director of OneSavings Bank, said: “While the results this month are disappointing, it’s certainly not surprising as buyers wait to see how the political dust settles in the coming months. In the short term at least, for the serious buyer, the combination of some of the lowest mortgage rates in living memory, combined with attractive bargains on the market, there are some opportunities in this market.
“The backdrop of the political environment in recent years has presented the housing sector with a massive headache. To give a sense of the lack of direction, the next election could deliver the seventh Minister of State for Housing since the 2016 referendum. While the outcomes of the events on 12 December 2019 and 31 January 2020 may provide a modicum of stability, there will remain bigger issues that will continue to affect the sector long after. The next government must show their commitment from the outset to improving current levels of housing stock to clear the deficit we currently sit at.”
Dave Harris, CEO at equity release lender, More 2 Life, said: “First-time buyer numbers have been rising steadily over recent months as many make the most of the government’s HTB scheme. With the HTB ISA deadline around the corner, many more will want to get in on the action before it’s too late. For others, the generosity of the Bank of Mum and Dad is their only viable route to a deposit. Many parents are passing on their property wealth to their children to help them fund a house purchase, which is driving interest in the equity release sector. Our own data shows that 25% of our customers are gifting some or all of their equity to friends and family once it has been released.
“The number of equity release products which enable retirees to pass on their housing wealth as a ‘living inheritance’ is growing. Recent stats from the Equity Release Council show that the number of lifetime mortgages with an inheritance guarantee increased by 88% year-on-year in 2019. With more of these deals on the market, increasing numbers of retirees will be able to fund their own lifestyles and unlock housing wealth for their children.”