First Time Buyer Numbers Increased Across UK in Q4 2018

First time buyer numbers increased across all parts of the UK in the fourth quarter (Q4) of 2018, according to the latest Regional Lending Trends report from UK Finance.

The trade body assessed the trends covering member mortgage lending in regions of the UK in Q4 and the whole of 2018. The data includes first time buyers, homeowners, home purchases and remortgaging in the residential markets of London, Scotland, Wales and Northern Ireland.

London

11,000 new first time buyer mortgages completed in the capital in Q4 2018, which is 5.8% more than in Q4 2017. The £3.2 billion of new lending was up by 7.4% year-on-year. In 2018 in total, 42,800 new first time buyer mortgages completed – up by 0.5% on 2017. The £12.6 billion of new lending was 2.6% higher on an annual basis.

There were 7,400 new home mover mortgages in Q4 – down by 1.3% on the same quarter of the previous year. The £3.1 billion of new lending was up by 3.3%. In 2018, 28,800 new home mover mortgages were recorded, which is 5% fewer yearly. The £12.0 billion of new lending was down by 1.9% on 2017.

In London, 15,000 new homeowner remortgages completed in Q4 – 2.7% more than in Q4 2017. The £4.6 billion of remortgaging was up by 1.8% year-on-year. Overall in 2018, 60,400 new homeowner remortgages completed, which is up by 6.2% annually. This is the highest annual number of remortgages in the capital since 2008, when this figure stood at 111,900. The £18.8 billion of remortgaging was up by 8.3% on 2017.

Northern Ireland

There were 2,900 new first time buyer mortgages completed in Northern Ireland in Q4 – up by 11.5% on the same quarter of the previous year. The £0.31 billion of new lending was 19.2% more on an annual basis. In 2018, 10,500 new first time buyer mortgages were recorded, which is 9.4% more than in 2017. This is the highest annual number of first time buyer mortgages in Northern Ireland since 2004, when this figure stood at 10,600. The £1.1 billion of new lending was up by 14.6% year-on-year.

1,900 new home mover mortgages completed in Q4, which is up by 5.6% on the same quarter of 2017. The £0.26 billion of new lending was 13% higher year-on-year. In 2018, there were 6,600 new home mover mortgages – 6.5% more annually. This is the highest annual number of home mover mortgages since 2007, when the figure was 12,700. The £0.9 billion of new lending was 9.9% higher on the previous year.

2,600 new homeowner remortgages were completed in Q4 – 18.2% more than in Q4 2017. The £0.28 billion of remortgaging was up by 21.7% year-on-year. In 2018, 9,500 new homeowner remortgages were recorded, which has risen by 11.8%. This is the highest annual figure since 2009, when it stood at 10,100. The £1.0 billion of remortgaging in 2018 was 14.8% higher on an annual basis.

Scotland

9,000 new first time buyer mortgages completed in Q4, which is up by 5.9% on the same quarter of the previous year. The £1.07 billion of new lending was 9.2% higher year-on-year. In 2018, there were 34,100 new first time buyer mortgages – 3.1% fewer than in 2017. The £4.0 billion of new lending was up by 2.0% on an annual basis.

There were 9,000 new home mover mortgages in Q4 – 2.3% more than in Q4 2017. The £1.46 billion of new lending was 5.8% higher yearly. In 2018, 34,300 new home mover mortgages were completed – down by 0.9%. The £5.5 billion of new lending was up by 1.5% on 2017.

9,600 new homeowner remortgages were completed in Q4, which is up by 14.3% on an annual basis. The £1.21 billion of remortgaging was 16.3% more on Q4 2017. In 2018, there were 35,400 new homeowner remortgages – up by 11%. This is the highest annual number since 2011, when it was 36,400. The £4.5 billion of remortgaging was 13.8% higher annually.

Wales

There were 4,800 new first time buyer mortgages in Q4, which is up by 4.3% on the same quarter of 2017. The £0.58 billion of new lending was up by 7.4%. In 2018, 16,800 new first time buyer mortgages were recorded – an increase of 1.2% on 2017. This is the highest annual level of first time buyer mortgages since 2006, when 16,900 were recorded. The £2.0 billion of new lending was up by 4.1% year-on-year.

4,400 new home mover mortgages completed in Wales in Q4, following a 2.3% rise on Q4 2017. The £0.69 billion of new lending was up by 6.2%. In 2018, there were 15,800 new home mover mortgages – 0.6% more than in the previous year. This is the highest number of home mover mortgages in Wales since 2007, when 25,600 were seen. The £2.5 billion of new lending was 4.7% higher on an annual basis.

5,400 new homeowner remortgages were completed – up by 22.7% on the same quarter of 2017. The £0.67 billion of remortgaging was 28.8% higher yearly. In 2018 in total, 20,100 new homeowner remortgages were recorded – 12.3% more year-on-year. This is the highest annual number of remortgages since 2008, when 38,600 completed. The £2.4 billion of remortgaging was up by 16.3% on 2017.

Comments

Nick Chadbourne, the CEO of conveyancing panel manager LMS, says: “Remortgaging continues to be the preferred route for many homeowners looking to save on their monthly payments. Similar to last quarter, London houses the bulk of regional remortgage lending in the UK, with £4.6 billion taking place. However, Scotland is where remortgage activity is proving most popular and is in double-digit growth. Last quarter showed a 13.6% year-on-year rise and today’s result shows a similar amount of activity.

“LMS data shows that 38% of these borrowers in December opted for a five-year fix as they finished their two-year deals. These longer-term fixed deals are providing certainty for borrowers during ambiguous times, as they choose to lock in during this current low interest rate environment.”