Growth continues in the UK mortgage market, including buy to let.
Mortgage market growth in the UK is continuing, with the number of first time buyer mortgages completed in July up by 5.8% compared to the same month in 2018. The latest industry figures, from UK Finance, show that the number of home mover mortgages were up by 1.4% and that buy to let mortgages are also growing.
There’s been an increase of 5.5% year on year on buy to let mortgages, after several years of declines following tax changes.
There were 20,760 new remortgages with additional borrowing in July 2019, down 7.1% year on year with the average additional amount borrowed at £55,500.
There were also 20,380 new pound for pound remortgages, which is down 12.9%. According to UK Finance, this has been driven in part by a fall in the number of fixed rate mortgages coming to an end and the growing popularity of product transfers.
Richard Pike, Phoebus Software sales and marketing director, said : ‘It appears that no matter what happens in Westminster … people are still moving or managing to get on the housing ladder’.
‘With an increased number of longer-term fixed rate mortgages that have been taken out since the referendum, it is unsurprising that remortgage figures are down. Until the uncertainty that is being felt across the country is over, one way or another, that trend is likely to continue as borrowers look for some kind of certainty, at least for their finances,’.
In July, there were 5,800 new buy to let home purchase mortgages completed and 15,100 remortgages in the buy to let sector, which is an increase of 2% when compared to the same month in 2018.