Data from first-time buyers and homeowners has displayed the trends of mortgage lending in the UK, with affordability measures in the residential and buy-to-let markets.
In September 2019, there were 29,100 new first-time buyer mortgages completed, which is 1.6% more than September of 2018. For home-movers, there were over 29,045 mortgages completed – 1.8% more than in the same period a year before.
Overall, there were 17,740 new remortgages with additional borrowing in September 2019, which is almost 6% more than the same month last year. The additional amounts borrowed in September stood on an average of £50,000. In comparison to September 2018, that’s an 8% increase.
There were around 5,400 new buy-to-let home purchases in September of 2019, standing 3% less than the previous year and there were 12,900 remortgages recorded in the buy-to-let sector which is the same amount as in 2018.
This could potentially offer new home buyers better access to the housing market, although the longer-term deals are accompanied by a trade-off. This is due to the fact that additional interest payments that accumulate over a period of 40 years would come to a heavy sum of money.
The average first-time buyer is around 30 years old, some borrowers would not be expected to pay off their debt until they reach their mid-70s.
While the house prices are climbing up across the UK, home buyers are reaching out to lower the long-term cost of their mortgage by lengthening the duration between each payment.
If you have any queries about your residential mortgage, speak to Compariqo today. Our property finance team has extensive experience and can assist with the process of your loan.