After the financial crash in 2007/08 has the UK housing market recovered? We explore all the latest statistics to see if the market has bounced back or not and which mortgage lenders are currently offering the best deals.
What is the size of the mortgage market?
The outstanding value of all residential mortgage loans was £1,486 billion in Q3 2019, 3.9% higher than a year earlier.
The value of gross mortgage advances was £73.3 billion, broadly unchanged in comparison to Q3 2018.
The value of mortgage advances (gross) in Q3 2019 was £73.3 billion, unchanged from Q3 in the previous year.
Over £245 billion was borrowed in 2016 for mortgages alone.
The value of new mortgages was £64.5 billion in Q3 2019, £500 million higher than in Q3 2018.
The proportion of mortgages in arrears fell to its lowest amount since 2007, at 0.94% (Q3 2019).
There are 10.94 million outstanding mortgages in the UK (May 2019).
The number of first-time buyer mortgages and the number of loans for home movers were both on the up last year, and it’s a trend that looks set to continue in 2020. The housing market has already seen a recent uptick, possibly due to post-election confidence and the annual spring bounce in property sales.”
Getting your foot on the property ladder is a major milestone in your life, but at what age are people buying their first home?
In fact, this is the highest number of first-time buyer mortgages since 2006 (402,800)
The value of these mortgages totalled £62 billion
This is 4.9% higher than in 2017
There were 30,620 new first-time buyer mortgages completed in November 2019, 10.5% fewer than in the same month in 2018. There were 30,750 homeowner mortgages completed in November 2019, 10.6% fewer than in the same month a year earlier. This movement reflects particularly strong home-purchase activity in November 2018.
Remortgaging is the act of switching your existing mortgage to a new deal, this might be to raise some cash, reduce the interest rate on your mortgage or consolidate your debts for example.
There were 18,610 new remortgages with additional borrowing in November 2019
This is 5.7% more than in the same month in 2018
The average additional amount borrowed in November was £51,470
There were 18,470 new pound-for-pound remortgages (with no additional borrowing) in November 2019, 12.4% fewer than in November 2018
New remortgages with additional borrowing in April 2019
Mortgages in arrears
If your mortgage is in arrears it means your payments are overdue – this is expressed as a percentage of your total outstanding balance.
There are 71,590 homeowner mortgages in arrears of 2.5% or more of the outstanding balance (Q3 2019)
This is 9% lower than in Q3 2018
Within this total, 22,300 homeowner mortgages were in significant arrears (representing 10% or more of the outstanding balance)
There are 4,550 buy-to-let mortgages in arrears of 2.5% or more of the outstanding balance (Q3 2019)
14 properties were repossessed every day in Q2 2019
This amounts to 1 property every hour and 40 minutes
1 hour 34 minutes
Every hour and half a property was repossessed in Q1 2019.
Finder's mortgage specialist, Matthew Boyle, gives his insights:
Despite a flat few years in the country’s house-selling sector, the size of the UK’s mortgage market has remained steady. In the third quarter of 2019, the outstanding value of all residential mortgage loans stood at £1,486 billion – 3.9% higher than a year earlier.
The number of first-time buyer mortgages and the number of loans for home movers were both on the up last year, and it’s a trend that looks set to continue in 2020. The housing market has already seen a recent uptick, possibly due to post-election confidence and the annual spring bounce in property sales.
It’s not just London or the south-east where the residential property market is looking positive. The latest data released by the Land Registry showed that December 2019 was the first month since February 2018 that property prices rose across every region in the UK.
With interest rates remaining comparatively low, and demand for property staying relatively high, the mortgage market continues to be a competitive space. Would-be house buyers and movers will be looking for the best rates on mortgages from their lenders, whether opting for a fixed rate or variable home loan.
The Money Charity
Click here for more research. For all media enquiries, please contact
Matt Mckenna Head of UK communications T: +44 20 8191 8806
Matthew Boyle is a mortgages and home services publisher at Finder. He has a 7-year history of publishing helpful guides to assist consumers in making better decisions. In his spare time, you will find him walking in the Norfolk countryside admiring the local wildlife.
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