First Choice Finance - Mortgage Broker First Choice FinanceCompare Home Owner Loans
First Choice Finance - Mortgage BrokerCompare Home Owner Loans

Annual Growth In August For UK Mortgage Sector

Annual Growth In August For UK Mortgage Sector

igure`s For Mortgage Lending See An Increase In August
First Choice Finance Is A Mortgage Broker With 25 Years Experience
Qualified Mortgage Advice & Free Quotes


Annual growth in August for UK mortgage sector

Video transcript

A spike in mortgage loan lending was witnessed across the UK in August this year.

Figures from the Council of Mortgage Lenders revealed an 11 per cent annual upturn in borrower activity for homeowner house purchases via a mortgage loan during the month.

At the same time, first time buyer borrowing was up by 24 per cent year on year.

A total of 12.2 billion pounds were lent to homeowner borrowers during the month, while 5.1 billion was lent to first time buyers.

It marks a considerable upturn in activity over the last year and this was put down to a range of factors.

Firstly, a reduction in the UK base rate of interest following the result of the EU referendum in June has helped to make many mortgage offerings more affordable.

And secondly, ongoing government support for first time buyers to build sufficient deposits is helping to maintain a steady flow of new entrants into the marketplace.

The director general of the CML, said that mortgage sector activity bounced back in August from a dip that had been witnessed in the previous month.

It therefore represents resilience in the market that has not been seen for some time.

He continued: `The re-pricing of mortgages, following August`s base rate cut, should help to underpin a continuing, strong appetite for homeownership over the coming months.`

The average loan size for a first-time buyer in August stood at just over 136,000 pounds. Meanwhile, the typical loan for UK home movers reached 175,000 pounds.

On average, the amount being borrowed in comparison to annual take-home income for UK borrowers remained relatively stable at 3.56 times and 3.27 times respectively, for these two groups.

August was also a positive month for remortgage activity across the UK, with a 41 per cent annual upturn in activity to 5.9 billion pounds.

Buy-to-let lending did fall, however, with a 12 per cent reduction year-on-year.

The council of mortgage lenders cited the government's stamp duty change on second properties, which was introduced earlier this year, as having a significant impact in this area.

In addition, he noted that a tightening of affordability checks for buy-to-let borrowers, ahead of tax changes in April next year, could also limit buy-to-let house purchases in the months ahead. 

Homeowner Secured Loans
First Choice are tied to certain loan providers.
21.2% APRC variable
Rates from just 11.1%APRC to no more than 59.9%APR for any circumstances. Secured loans are secured on your home.

Mortgages & Remortgages
4.5% APRC
Representative Example: Borrow £80,000 over 25 years At 4.6% Variable, £461.95 for 300 months.
Total Payable £138,585. Total Cost Of Credit £58,585 (incl £1360 fee)

Unsecured Personal Loans
First Choice are tied to certain unsecured lenders.

Security is required on immovable property.

Established In 1988. Company Registration Number 2316399. Authorised & Regulated By The Financial Conduct Authority (FCA). Firm Reference Number 302981. Mortgages & Homeowner Secured Loans Are Secured On Your Home

First Choice Finance is a trading style of First Choice Funding Limited of The Old Courtyard, 103 Buxton Road, High Lane, Stockport, Cheshire. SK6 8DX. Copyright protected 2014.

  Best Deals & Latest News

Debt Consolidation Remortgages & Loans

Release Equity Via A Remortgage or Loan

Mortgage & Remortgage LTV Calculator

Reasons Why Mortgages May Be Rejected

Remortgage With Bad Credit

Online Home Loans
Secured Loans and Remortgage Advice
Loan or Mortgage Application

Loan Plans

Mortgage and remortgages - Best Buys

Financial Help For People With Poor Credit

Reduce your monthly outgoings with debt consolidation loans from First Choice Finance helping you consolidate existing credit cards and loans into one manageable monthly repayment.

Could payday loans harm my mortgage hopes?