New homeowner remortgages in London completed in the second quarter increased by 16.9% to 15,200 to reach a nine-year high compared with the same quarter of 2017, according to the latest figures released by UK Finance.
The £4.84bn of remortgaging in the second quarter was 23.2% more year-on-year.
However, the report also showed new homeowner mortgages completed in London decreased by 8.1% to 6,800 in the second quarter of 2018, compared with the same quarter a year earlier.
New lending in the quarter was 8.6% down year-on-year at £2.77bn.
The number of new first-time buyer mortgages completed in London in the second quarter fell 3.7% to 10,300, against the same quarter of 2017.
The average first-time buyer in the capital is 32 and has a gross household income of £68,000, the data showed.
Regional overview
By region, Scotland and Wales remortgaging activity remained strong as house purchase activity softened in the second quarter of 2018, whilst Northern Ireland saw the highest growth in house purchase activity across the UK.
Remortgaging in Scotland continues to grow as house purchase activity softens
In Scotland new homeowner remortgages completed in the second quarter of 2018 rose by 9.5% to 8,100 against the same quarter a year earlier.
The £1.01bn of remortgaging in the second quarter was 11% more year-on-year.
There were 9,200 new homemover mortgages completed in Scotland in the second quarter of 2018, some 2.1% fewer than in the same quarter of 2017.
The £1.46bn of new lending in the quarter was the same year-on-year.
The number of new first-time buyer mortgages completed in the second quarter of 2018 increased by 3.1% to 9,300, compared with the same quarter of 2017.
The £1.1bn of new lending was 2.8% more year-on-year.
The average Scottish first-time buyer is 29 and has a gross household income of £35,000.
Welsh remortgaging rises as house purchase activity slightly slowed
In Wales new homeowner remortgages completed in the second quarter of 2018 increased by 17.1% to 4,800 compared with the same period a year earlier.
The £0.57bn of remortgaging in the second quarter was 18.8% more year-on-year.
There were 3,800 new homemover mortgages completed in the second quarter of 2018, some 2.6% fewer than in the same quarter of 2017.
The £0.57bn of new lending in the quarter was 1.7% down year-on-year.
The number of new first-time buyer mortgages completed in the second quarter of 2018 slowed by 2.4% to 4,100 against the same period a year ago.
The £0.48bn of new lending was 2% down year-on-year. The average Welsh first-time buyer is 29 and has a gross household income of £35,000.
Northern Ireland sees highest growth in house purchase activity
Northern Ireland saw an increase both in remortgaging and house purchase activity in the second quarter of 2018.
There were 2,700 new first-time buyer mortgages completed in the second quarter of 2018, 12.5% higher than in the same quarter of 2017 and the highest quarterly level since 2005. The £0.28bn of new lending was 16.7% more year-on-year.
New homeowner mortgages completed in the second quarter of 2018 increased by 6.7% at 1,600 compared with the same quarter of 2017. The £0.21bn of new lending in the quarter was 10.5% more year-on-year.
There were 2,300 new homeowner remortgages completed in the second quarter, 9.5% higher than in the same quarter a year earlier. The £0.25bn of remortgaging in the second quarter was 13.6% more year-on-year.
Jackie Bennett, director of mortgages at UK Finance, said the mortgage market continues to be driven by strong remortgaging activity over the UK, with customers locking into attractive deals in anticipation of the recent base rate rise.
She added: “House purchase activity has slowed slightly, with affordability remaining a challenge for many would-be borrowers. This underlines the need for clarity over the future of the Help to Buy scheme after 2021.
“The Northern Ireland mortgage market continues to perform strongly and has returned to the levels of consistent growth last seen in the early 2000s.
“Lending to first-time buyers has overtaken remortgaging as the largest sector by value, reversing the position in the last quarter, as borrowers take advantage of what remains the UK’s most affordable region.
“In Northern Ireland, with the number of first-time buyers reaching a twelve year high, it will be important to increase the supply of new homes to match this growing demand.”
Masthaven managing director of mortgages Matt Andrews said the remortgaging spike is not a surprise, and is a trend set to continue throughout 2018 as the threat of Brexit and further base rate rises loom.
He added: “Brokers are already working hard to reengage with their back books and should continue to utilise this period to lock clients into favourable rates.”
