According to new mortgage data out today, there was a 5.8% rise in the number of first-time buyers completing on their mortgage in July compared to the same month in 2018.
In fact there were nearly as many people taking out mortgages to make their first step onto the property ladder in July as there were house movers, according to the figures from UK Finance.
Those people successfully taking out mortgages to move house also increased compared to last July, with numbers nudging up by 1.4%.
Adrian Moloney, sales director at OneSavings Bank said: “As our current state of political limbo drags on, we’re seeing a number of buyers abandoning the wait-and-see approach.
“This has been helped by mortgage rates remaining as competitive as they have been for some time, alongside high employment and improved earnings. In this market, there are bargains to be had and it seems some are making the most of these now.”
Fewer people remortgage
Meanwhile, the number of people who were remortgaging – or switching to a new mortgage deal – has fallen compared to the summer of 2018.
While the number of people remortgaging and borrowing additional cash – to pay for refurbishments, for example – fell by 7%, the number who were completing on a straight remortgage on their home only plummeted by nearly 13%.
Kevin Roberts, director of Legal & General Mortgage Club, said it was good to see first-time buyer and home mover numbers go up, particularly in light of the current circumstances.
However, he also highlighted the importance of remortgaging for those borrowers reaching the end of their deals.
“Any borrower approaching the end of their mortgage deal should seek professional advice on their next step. Advisers can help borrowers make informed decisions about which products suit them best, whether fixed or variable (how long to fix for) and what they can afford,” he said.
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