New homeowner remortgaging activity in London, one of the top residential hubs in the world, reached a nine-year high between April-June 2018, according to UK Finance.
There were 15,200 new homeowner remortgages in London completed in the second quarter, some 16.9 per cent more than in the same quarter a year earlier. The £4.84bn of remortgaging in the second quarter was 23.2 per cent more year-on-year.
UK Finance was of the view that homeowners locked into competitive deals amid anticipation of the recent base rate rise, leading to a heightened remortgaging activity. However, house purchase activity has slowed slightly, with affordability remaining a challenge in the long-term.
UK Finance is a trade association, which represents the finance and banking industry operating in the UK. It represents around 250 firms in the UK providing credit, banking, markets and payment-related services. The data provided by UK Finance reflects the trends in the housing market.
The first-time house buyer market was also stable during the first six months of 2018. There were 10,300 new first-time buyer mortgages completed in London in the second quarter of 2018 amounting to £3.04bn of new lending. The average age of a first-time buyer in the capital is 32 years and has a gross household income of £68,000, UK Finance revealed.
Jackie Bennett, Director of Mortgages at UK Finance, said: "Remortgaging in London reached its highest level in nine years in the second quarter of this year, as homeowners locked into competitive deals amid anticipation of the recent base rate rise."