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.