First-time buyers (FTBs) continue to dominate the UK mortgage market with latest trends indicating an increase in the number of mortgages completed by FTBs in May 2019.
There were 30,720 new first-time buyer mortgages completed in May 2019, 0.5 per cent more than in the same month in 2018, according to the May Mortgage Trends report from UK Finance.
UK Finance is the collective voice for the banking and finance industry. Representing more than 250 firms across the industry, its findings are one of the lead indicators of the UK housing market.
The increase in the approval of number of mortgages for FTBs can be attributed to an increase in employment opportunities, higher income and affordable mortgage rates. Besides, FTBs are now in a better position to seek mortgage approval in view of various measures introduced by the government to help them step up the housing ladder.
Meanwhile, the buy-to-let mortgage market continued to remain stable. There were 5,500 new buy-to-let home purchase mortgages completed in May 2019, the same number as this time last year. There were 15,000 remortgages in the buy-to-let sector, 2 per cent more than this time last year, according to UK Finance.
Demand for buy-to-let homes has resulted in revenue growth for investors and landlords, prompting them to expand their rental portfolio, especially in London.
UK Finance is the collective voice for the banking and finance industry, representing more than 250 firms