New first-time buyer mortgages up 15.2%

Figures from UK Finance revealed that there were 34,800 new first-time buyer mortgages in November, an increase of 15.2% on the same period in 2016.

This resulted in £5.6bn of new lending in November, 16.7% higher than a year earlier.

The data also showed that there were 36,200 new homemover mortgages during the month, a 16.8% increase on November 2016.

This £7.5bn of new lending in November was up 19% year-on-year.

In addition, there were 6,600 new buy-to-let mortgages, down 1.5% on November 2016.

This resulted in the amount lent in November totalling £900m, the same figure as 12 months earlier.

“The data shows housing market activity remains buoyant, despite November’s rise in the base rate,” said Paul Smee, head of mortgages at UK Finance.

“Steady increases in lending for house purchases together with increases in homeowner remortgages reflect a keenness among consumers to benefit from still historically low interest rates, and a highly competitive marketplace.

“In contrast, declines in buy-to-let lending reflect the changing regulatory and fiscal environment for landlord businesses, where some landlords might be inclined to reappraise the viability of their portfolios.”

Jonathan Sealey, CEO at Hope Capital, added: “Confirmation of activity in November today shows an upbeat end to the year.  

“Negativity that arose from the public’s nervousness around Brexit negotiations appears to have abated, and despite a rise in interest rates there are still plenty of good deals on offer.

“As the figures bear out, people are now taking advantage.  

“Although buy-to-let has suffered under new regulations, the opportunities are still there for specialist lenders to provide funding as landlords look to improve their housing stock, rather than increase their portfolios.  

“There are likely to be more interest rate rises this year, but for now we remain in an incredibly low interest environment, which should mean continued activity across the market.”