The number of mortgages completed in November 2019 was down by around one tenth on the same time last year for both first-time buyers and home movers, figures from UK Finance show.
There were 30,620 new first-time buyer mortgages, down 10.5% from November 2018, and 30,750 home mover mortgages, a drop of 10.6%. This movement reflects particularly strong home-purchase activity in November 2018.
The value of first-time buyer mortgages was £5,271 million while home mover lending stood at £7,012 million.
Remortgaging with additional borrowing in November 2019 rose by 5.7% year-on-year to 18,610 cases with the average additional amount borrowed being £51,470.
There were 18,470 new pound-for-pound remortgages (with no additional borrowing), which is down 12.4% from November 2018.
Buy-to-let home purchase loans fell in November 2019 to 6,300, which was 4.5% fewer than the same time last year. Remortgaging in the buy-to-let sector was also down, by 5.1% to 15,000 cases.
Rob Barnard, director of intermediaries at Masthaven, said: “These are mixed figures from UK Finance, however the mortgage market was resilient in 2019, particularly for first time buyers. This slight dip in completions could be a reflection of pre-election jitters. As certainty starts to build around the country, we should see a bounce bank in figures.
“However, the industry needs to ensure they are working to support the market. We need to capitalise on growing positive consumer sentiment and continue to offer products which suit modern lifestyles.
“As we move into 2020, we need to ensure later life and self-employed borrowers also benefit from increasingly flexible and innovative products and rates and we don’t leave any borrower groups locked out of the market”.
Nick Chadbourne, CEO of conveyancing solutions provider LMS, commented: “The continuation of low interest rates and competitive products from lenders ensured 2019 ended with a stable remortgage market.
“LMS data shows the gap between purchases of 5-year fixed rate products and 2-year fixed rate products has been closing steadily in recent months as borrowers take advantage of lower rates in place of longer-term certainty. It will be interesting to see if the balance will shifts one way or another moving into Q1 2020.
“All eyes are on the upcoming base rate decision. It will be interesting to see how lenders and borrowers react if there is a cut, as has been hinted at by prominent policy makers, given that it has been a while since rates last fell.”
By Joanne Atkin
Source: Mortgage Finance Gazette