The number of first-time house buyers, who took mortgage in the UK in January 2018, increased annually by 7 per cent to reach 24,500.
Data released by UK Finance indicated that the demand from the first-time buyers continued to remain strong, as more buyers climbed the housing ladder. The £4bn of new lending in January 2018 was 11.1 per cent more year-on-year. The average age of a first-time buyer is 30 years with a gross household income of £41,000.
More first-time buyers are entering the market owing to several factors. While employment opportunities have increased significantly, mortgage rate is also a factor to be considered. The government’s impetus to first-time buyer market by permanently exempting them from stamp duty for homes up to £500,000 is also working in their favour. The number of first-time buyers entering the market is expected to increase this year.
The number of homeowner remortgages increased to a new high with 49,800 new remortgages completed in January 2018. This is approximately 19.1 per cent more than in the same month a year earlier. This is the highest monthly number of remortgages since November 2008, when the figure stood at 51,300. The £8.9bn of remortgaging in January 2018 was 20.3 per cent more year-on-year.
The £4bn of new lending in the month was 11.1 per cent more year-on-year.