First-time Buyers

First-time buyer numbers hit 12-year high

Christina Hoghton
Written By:
Christina Hoghton

It’s a buyer’s market, mortgage rates are at super-low levels, and most first-time buyers don’t pay Stamp Duty

First-time buyer mortgage numbers rocketed to a 12-year high in August, according to UK Finance.

The trade association for mortgage lenders said there were 35,010 new first-time buyer mortgages completed in August 2019, 0.7 per cent more than in the same month in 2018.

This is the highest monthly total since August 2007 when there were 35,070 new first-time buyer mortgages.

Andrew Montlake, managing director of mortgage broker, Coreco, said: “First time buyers are absolutely flying. They are being driven on by a combination of reduced competition from landlords, once-in-a-lifetime mortgage rates, high employment and the buyers’ market we’re in.

“First time buyers have been the one constant over the past couple of years and this latest data shows that there is still a huge amount of momentum at this end of the market.

“Despite a continued backdrop of political, economic and constitutional chaos, first time buyers know that the conditions to buy are perfect. Those supported by the Bank of Mum and Dad are in an even better position.”

Moving stalled

It was first-time buyers propping up the rest of the housing market, with homemoving and refinancing falling in popularity.

There were 35,380 homemover mortgages completed in August 2019, 5.5 per cent fewer than in the same month a year earlier, said UK Finance.

There were 18,640 new remortgages with additional borrowing in August 2019, 2.9 per cent fewer than in the same month in 2018.

Pound-for-pound remortgages totalled 18,100, 2.3 per cent fewer than in the same month a year earlier.