Home buying edges down month-on-month: UK Finance

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First-time buyers borrowed £5m in May, down four per cent month-on-month but up 10 per cent year-on-year, according to new figures from UK Finance.

UK Finance, a trade body containing the former Council of Mortgage Lenders, says this group took out 29,000 loans, down three per cent on April but up 2 per cent on last May.

Home movers borrowed £6.3m in May, down 10 per cent month-on-month but up 15 per cent year-on-year.

They took out 29,100 loans, down 5 per cent on last month and up 7 per cent on last year.

buy-to-let borrowers took out £900m of loans in May, flat for the last eight months.

They took out 6,500 loans, down 2 per cent month-on-month but up 35 per cent year-on-year.

On the remortgage side, homeowners borrowed £5.9m, a fall of 3 per cent month-on-month but a rise of 7 per cent year-on-year.

UK Finance head of mortgages Paul Smee says: “The apparent strong growth in mortgage lending in May might flatter to deceive. The relative weakness in lending last May following the stamp duty changes makes comparisons misleading.

“The seasonally adjusted data shows a less buoyant lending picture, with home buying activity remaining relatively unchanged month-on-month and remortgage lending gradually decreasing each month since January.

“In the summer months, we expect home buying activity to continue with an even split between first-time buyers and home movers but in greater numbers than in the winter months; we expect buy-to-let to remain subdued compared to its recent 2015 peak.”

Non-seasonally adjusted

Non-seasonally adjusted mortgage lending in May rose 10 per cent  month-on-month and 16 per cent year-on-year.

Home buyers borrowed £10.8bn in May.

This equates to 58,400 loans, up 12 per cent on April and 10 per cent on May 2016.

Within this, first-time buyers borrowed £4.7bn, up 12 per cent both on last month and on May 2016.

They took out 29,200 loans, up 13 per cent month-on-month and 8 per cent year-on-year.

Home movers borrowed £6.2bn, up 11 per cent on April and 22 per cent year-on-year.

This equalled 29,200 loans, up 11 per cent month-on-month and 13 per cent compared to a year ago.

Remortgage activity was up 10 per cent by value and 9 per cent by volume on April.

Compared to a year ago, remortgage lending was up 12 per cent by value and 7 per cent by volume.

Gross buy-to-let lending was £2.9bn in May, up 16 per cent on April and 12 per cent on May last year.

Landlords took out 19,100 loans, a 16 per cent increase on April and 15 per cent on a year ago.