New Buy-To-Let Lending has Plummeted, but Remortgaging Within the Sector is Soaring
By |Published On: 16th July 2018|

Home » Uncategorised » New Buy-To-Let Lending has Plummeted, but Remortgaging Within the Sector is Soaring

New Buy-To-Let Lending has Plummeted, but Remortgaging Within the Sector is Soaring

By |Published On: 16th July 2018|

This article is an external press release originally published on the Landlord News website, which has now been migrated to the Just Landlords blog.

New buy-to-let lending

 

During May, 5,500 new buy-to-let home purchase mortgages were completed, which is down by 9.8% on an annual basis. By value, this accounted for £0.7 billion of new buy-to-let lending in the month, down by 22.2% on May 2017.

However, 14,600 new buy-to-let remortgages were completed in the month, which is up by a sturdy 15% on May last year. By value, this £2.3 billion of lending was up by 21.1% year-on-year.

 

First time buyer mortgages

 

By contrast, some 32,200 new first time buyer mortgages were completed in May, which is up by 8.1% on May 2017. The £5.4 billion of new lending in the month was 12.5% higher on an annual basis.

UK Finance found that the average first time buyer is 30-years-old and has a gross household income of £42,000.

 

Homeowners and home movers

 

The number of new home mover mortgages also rose in May, with 31,100 completions, which is up by 4.4% on May 2017. The £6.6 billion of new lending in the month was 4.8% higher year-on-year.

The average home mover is 39-years-old and has a gross household income of £55,000.

Additionally, there were 36,000 new homeowner remortgages completed in May, some 7.1% more than in the same month last year. The £6.3 billion of remortgaging marked a 6.8% rise in the value of last May’s remortgages.

The Director of Mortgages at UK Finance, Jackie Bennett, comments on the data: “The mortgage market is seeing a pre-summer boost, driven by a rise in the number of first time buyers and strong remortgaging activity. It is also particularly encouraging to see an increase in home movers, after a period of relative sluggishness in this important segment of the market.

“However, affordability remains a challenge for some prospective buyers, and this is reflected by a gradual increase in loan-to-income multiples.”

She adds: “Meanwhile, purchases in the buy-to-let market continue to be constrained by recent regulatory and tax changes, the full impact of which have yet to be fully felt.”

 

Written by Rose Jinks

About the Author: Em Morley (she/they)

Em is the Content Marketing Manager for Just Landlords, with over five years of experience writing for insurance and property websites. Together with the knowledge and expertise of the Just Landlords underwriting team, Em aims to provide those in the property industry with helpful resources. When she’s not at her computer researching and writing property and insurance guides, you’ll find her exploring the British countryside, searching for geocaches.

Share this article:

Related Posts

Categories:

Looking for suitable
insurance for your
investment?
Check out our four
covers for landlords