Buy to let new loans and remortgaging show encouraging progress

Figures from UK Finance show there were 5,000 new buy to let house purchase mortgages completed in April - the latest data available. 

This was some 5.7 per cent fewer than in the same month a year earlier but nonetheless represents an improvement on months earlier this year. 

There were also 14,300 new buy to let remortgages completed in the month, some 32.4 per cent more than in the same month a year earlier. 

“Remortgaging activity bounced back to strong levels in April, as both homeowners and landlords put their house in order by locking into attractive fixed-rate deals ahead of an anticipated interest rate rise” claims Jackie Bennett, director of mortgages at UK Finance. 

“This spike in remortgaging was also driven by a large number of fixed-term mortgage deal rates coming to an end, combined with increased efforts by lenders to contact their customers before their deal rate expires.”

Other figures released by UK Finance show there were 26,700 new first-time buyer mortgages completed in the month, some 3.5 per cent more than in the same month a year earlier. The average first-time buyer is 30 and has a gross household income of £42,000.

There were also 25,100 new homemover mortgages completed in the month, some 4.2 per cent fewer than in the same month a year earlier. The average homemover is 39 and has a gross household income of £55,000.

There were 40,800 new homeowner remortgages completed in the month, some 36 per cent more than in the same month a year earlier.