Residential mortgage markets in the UK outside of England remained steady in the third quarter of 2018, according to the latest market trends report from UK Finance.
The number of new home owner remortgages completed in Scotland increased by 13.6% in the third quarter compared with the same period in 2017, reaching £1.18 billion, a rise of 18% year on year.
However, first time buyer completions fell, down by 5.3% in the same quarter of 2017 and the £1.04 billion of new lending was 1% down year on year. The figures also show that the number of new home mover mortgages completed fell by 1% compared with the same quarter of 2017 while £1.53 billion of new lending in the quarter was the same year on year.
‘Scotland saw strong growth in remortgaging activity this quarter, as many fixed rate loans come to an end and customers continue to shop around for attractive deals,’ said Douglas Cochrane, chair of UK Finance’s Scotland Mortgage Committee.
In Wales first time buyer mortgages completed fell by 2.3% compared to the third quarter of 2017, reaching £0.52 billion of new lending, unchanged year on year and the number of new home mover mortgages completed was also unchanged.
Home owner remortgages completed in the third quarter increased 2.1% compared to the same quarter a year earlier while the £0.61 billion of remortgaging in the third quarter was up 8.9% year on year.
‘The Welsh mortgage market has remained steady, with overall house purchases broadly in line with the same period last year. Remortgaging has continued to grow as many fixed rate loans mature and home owners take advantage of a competitive market to lock into attractive deals,’ said Julie-Ann Haines, chair of UK Finance’s Wales Mortgage Committee.
‘The number of first time buyers is down slightly amid ongoing economic uncertainty, while the buy-to-let market has also softened due to the impact of recent tax changes. However, the overall picture of the market is consistent with the last couple of years and it would appear that this trend is set to continue in the short term,’ she pointed out.
The number of new first time buyer mortgages completed in Northern Ireland in the third quarter of 2018 increased by 3.8% reaching £0.28 billion of new lending, up 7.7% year on year.
Meanwhile, new home mover mortgages completed increase by 5.9% at £0.24 billion, up 4.3% year on year and the number of new home owner remortgages increased by 4.8% to £0.24 billion, a rise of 9.1% year on year.
‘The Northern Ireland mortgage market continues to show steady growth in house purchase activity,’ said Derek Wilson, chair of UK Finance’s Northern Ireland Mortgage Committee.
‘Lending to first time buyers remains the largest sector by value, as borrowers take advantage of what continues to be the most affordable region in the UK. These figures underline the importance of boosting housing supply to meet this growing demand,’ he added.
