New data reveals stagnant growth for first-time buyer mortgages in London in the fourth quarter of 2017, while Northern Ireland experiences a 17.4% surge in first-time buyer mortgages for the same period
London key data highlights:
- There were 10,700 new first-time buyer mortgages completed in London in the fourth quarter of 2017, equivalent to the same quarter of 2016. The £3.05bn of new lending was 2.7% more year-on-year. The average first-time buyer in the capital is 32 and has an income of £66,000.
- There were 7,700 new home mover mortgages completed in London in the fourth quarter of 2017, some 8.5% more than in the same quarter of 2016. The £3.07bn of new lending in the quarter was 12.5% more year-on-year. The average home mover in the capital is 37 and has an income of £89,000.
- There were 14,500 new homeowner remortgages in London completed in the fourth quarter, some 9.8% more than in the same quarter a year earlier. The £4.41bn of remortgaging in the fourth quarter was 16.4% more year-on-year.
Commenting on the data, Director of Mortgages at UK Finance Jackie Bennett said: “London’s mortgage market remains competitive, with strong growth in the number of home movers and remortgaging reaching an eight-year high.
“However, subdued growth in the number of first-time buyers shows that affordability remains a challenge in the capital.
“Help to Buy can support first-time buyers when purchasing new build homes, and it will be important for the government to clarify its plans for the future of this scheme well before it ends in 2021.”
Northern Ireland key data highlights:
- There were 2,700 new first-time buyer mortgages completed in Northern Ireland in the fourth quarter of 2017, some 17.4% more than in the same quarter of 2016. The £0.27bn of new lending was 22.7% more year-on-year. The average Northern Ireland first-time buyer is 30 and has an income of £33,000.
- There were 1,900 new home mover mortgages completed in Northern Ireland in the fourth quarter of 2017, an 18.8% increase compared to the same quarter of 2016. The £230m of new lending in the quarter was 21.1% more year-on-year. The average Northern Ireland home mover is 39 and has an income of £45,000.
- There were 2,300 new homeowner remortgages in Northern Ireland completed in the fourth quarter, some 21.1% more than in the same quarter a year earlier. The £240m of remortgaging in the fourth quarter was 20% more year-on-year.
- The number of first-time buyers and remortgages in Northern Ireland in 2017 reached a ten-year high. There were 9,700 first-time buyers in 2017, up 20% on the previous year. There were 8,600 remortgages in 2017, up 15% on the previous year.
Commenting on the data, Derek Wilson, the chair of UK Finance’s Northern Ireland Mortgage Committee said: “The market in Northern Ireland remains highly competitive, with the number of first-time buyers and remortgagers reaching their highest levels in a decade.
“The strong growth in mortgage activity reflects the fact that prices remain more affordable than the rest of the UK.”
