FTB completion rate at three-year high: Imla

Data collected by Imla shows that first-time buyer mortgage completion rates are at a three-year high.

The report shows that the rate of mortgage offers for FTBs handled by intermediaries that were completed reached 89 per cent in Q4 2018, up from 81 per cent in Q3 2018.

Recent growth in the FTB market, reiterated by UK Finance finding that FTBs securing a mortgage in 2018 reached its highest annual level in 12-years, can be attributed to the Help to Buy scheme, according to Imla.

Government figures outline that the HTB scheme was accountable for around 1,000 home purchases a week in 2018.

Additionally, mortgage intermediaries posted a rise in total completion rates in Q4 2018 at 87 per cent, up from 82 per cent in Q3 2018.

Both remortgage and buy-to-let activity also saw a rise, with the former increasing from 83 per cent in Q3 2018 to 87 per cent in Q4 2018 and the latter rising from 82 per cent to 85 per cent in the same time frame.

Imla predicts that mortgage lending via intermediaries will rise to £169bn in 2019.

Executive director Kate Davies comments: “It is encouraging to see that when an intermediary does apply for a loan on their client’s behalf, they are being accepted and completed at growing rates.

“It is significant that intermediaries are able to demonstrate such a high success rate, especially when helping FTBs to navigate the complexities of an increasingly competitive and complex mortgage market.

“This is particularly true for those taking out HTB equity loans, who may need even more expert guidance.

“Imla predicts that mortgage intermediaries will account for a growing share of the mortgage market this year and into 2020.”

Recommended

Mortgage market to remain flat in 2019: Imla

The intermediary mortgage lenders association has predicted that total gross mortgage lending, loans for house purchase and remortgaging activity will remain flat in 2019. Imla estimates the markets to be at £269bn, £156bn, and £102bn, respectively. The body adds that, according to its latest report, nearly five million borrowers would have been expected to buy their first […]

Technology-Tablet-Computer-Tech-500x320.jpg

Online activity helping drive mortgage broker success: Imla

More UK consumers are searching online to find a suitable mortgage broker, according to the Intermediary Mortgage Lenders Association. An Imla report titled “The technological new frontier: digitisation in the mortgage market” suggests that as the Financial Conduct Authority and mortgage lenders support the further digitisation of the market, consumers will gradually find it quicker, […]

Guarantees in the retirement income market

Lorna Blyth, Royal London  Do guarantees benefit customers and, if so, when? To answer this conundrum we commissioned Millimans, a global actuarial consulting firm, to conduct an independent review of the UK retirement income market and whether guarantees really do offer customers better value for money. The brief The study was one of the most comprehensive undertaken […]

Newsletter

News and expert analysis straight to your inbox

Sign up