UK mortgage market gains momentum

The mortgage market in Britain is gaining momentum and the lull in the buy-to-let sector is showing signs of recovery, according to latest industry figures.

Data from UK Finance, the trade association for the UK’s banking and financial services, shows that in April 2019, a total of 27,370 new first-time buyer mortgages were completed, marking a 7.95% year-on-year increase.

During the same period, 25,450 home mover mortgages were completed, and 18,920 new re-mortgages were taken out, with a 0.3% increase in additional borrowing for re-mortgages.

The data shows the buy-to-let market is beginning to pick up, with 5,100 new buy-to-let home purchase mortgages and 14,400 re-mortgages completed in April 2019.

Richard Pike, sales and marketing director of Phoebus Software, providers of tailored loan and savings management software, notes how the figures represent positive news for the property and buy-to-let markets in the UK.

“Given and regulatory and tax changes that landlords have had to withstand, this is somewhat surprising.

“Although there are many investors holding fire in the commercial world, the same cannot be said for consumer confidence. And, as we head into the summer months, when historically we expect to see an uplift in the housing market, I can see the current trend continuing.”

Echoing sentiment that the buy-to-let market is picking up in Britain, is recent data by Moneyfacts, which shows the number of B2L mortgage products available to prospective landlords is on the rise.

During the last month to June, the number of BTL mortgages available increased by 143, putting the number of available products for landlords at its highest rate since the beginning of the financial crisis in 2007.

Moneyfacts’ research shows that there are now 2,396 buy-to-let products available, approximately 1,000 less than in October 2007 but around 25% more than in June 2018.

Darren Cook, finance expert at Moneyfacts, spoke about the rising number of BTL mortgage products on the market.

“An increase in availability to 2,396 products over the past 12 months indicates that providers are keen to offer potential investors plenty of choice within the sector,” said Cook.

If you are wanting to purchase property in Britain or are thinking about investing in buy-to-let property and taking advantage of what looks to be an increasingly positive market, take a look at the current lots in our forthcoming property auction for your ideal property investment in London, the south east and further afield.