The mortgage lending activity increased in August in the UK indicating stability in the UK housing market, as more number of people are buying residential assets.
Data released by UK Finance data shows that lending for house purchase was higher in August 2017 than in both the preceding month and a year earlier. During August, buy-to-let lending totalled £3.2 billion, 7 per cent higher than in June and 7 per cent higher than in July last year. This equated to 20,500 mortgages, 5 per cent more than in June and 9 per cent more than in July last year.
First-time buyers borrowed £5 billion, 15 per cent lower than in June but 14 per cent higher than in July 2016. They took out 30,400 mortgages, down 16 per cent on the preceding month but up 8 per cent year-on-year. The average amount borrowed by a first-time buyer increased from £138,999 in July 2017 to £140,035.
On a seasonally adjusted basis, borrowing by first-time buyers and movers increased by both value and volume. There was a decline in both the number of people remortgaging and the value of lending.
The data reveals the house purchasing activity in the UK and is adequate proof that the market is not facing any immediate challenge.
UK Finance’s Head of Mortgages Policy June Deasy said - activity picked up in August, and recent resilience ensured that borrowing by home movers was at its highest since March 2016, when transactions were boosted by an imminent increase in stamp duty.