FTB mortgages increase by 16% in August
Official figures show that buyers borrowed £5.7 billion.
The number of first-time buyer mortgages approved during the month of August increased by 16%, according to data released by UK Finance.
Official figures show that buyers borrowed £5.7 billion in total, a 16% increase on the previous month and 12% more than in August, 2016.
Customers took out 34,400 mortgages in August, 14% more than in July and 9% more than in the same month last year.
The overall total for new mortgages and remortgaging of homes rose by 7.6% to 129,500 between July and August, according to the Financial Times.
UK Finance revealed that loans taken out by home movers increased by 17% month-on-month and 12.9% year-on year to 38,500, while the overall value rose 18.3% on July and 20% year-on-year to £8.4 billion.
“Activity picked up in August, and recent resilience ensured that borrowing by home movers was at its highest since March 2016, when transactions were boosted by an imminent increase in stamp duty,” said June Deasy, head of mortgages policy, UK Finance.
“Over the last 12 months, the number of people remortgaging has been higher than in any period since late 2009. With mortgage rates close to historic lows and the likelihood of a rise in official rates moving closer, the popularity of remortgaging looks set to continue.”
Experts say that although the numbers show the housing market is improving, recent mortgage rate increases have yet to filter through into official data, which should be evident within the next few months.
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