Figures from UK Finance show that homeowner remortgages in England’s capital grew by 16.9 per cent year-on-year in Q2 2018, numbering 15,200 as compared to 13,000 – a nine-year high.
The value of these remortgages, at £4.84bn up from £3.93bn, represented an increase of 23.2 per cent on an annual basis.
However, the number of mortgages issued for those moving home and first-time buyers fell considerably. With 6,800 new homemover mortgages agreed in Q2 2018 compared to 7,400 in the first quarter of last year, 8.1 per cent fewer households upped sticks. New lending stood at £2.77bn, down 8.6 per cent annually (the previous amount being £3.03bn).
Meanwhile, there were 10,300 first-time buyers in London in Q2 2018 compared to 10,700 last year, a drop of 3.8 per cent. Lending totalled £3.04bn, down 1.9 per cent from £3.1bn.
These trends appear to be playing out on a larger canvass: earlier this month UK Finance stated that remortgaging activity dominated the mortgage market in June while FTB and moving transactions fell.
UK Finance director of mortgages Jackie Bennett says: “This [data that shows slowing house purchase activity] underlines the need for clarity over the future of the help to buy scheme after 2021.”
Masthaven managing director of mortgages Matt Andrews adds: “Unsurprisingly, remortgaging continues to spike, a trend set to continue throughout 2018 as Brexit and further base rate rises threaten borrower’s uncertainty.
“Brokers are already working hard to reengage with their back books and should continue to utilise this period to lock clients into favourable rates.”