The number of first-time buyers and home movers completing on new properties reached the highest level for a decade in February, according to the latest mortgage lending figures.
Data from UK Finance revealed remortgaging numbers went up too, rising by 11.3% in February compared to the same month in the previous year.
But the total number of home movers and first-time buyers making purchases in the month went up to 50,000 – the highest level for February since 2007.
With first-time buyer mortgages soaring by 2.4% compared to February 2017 and new lending to home movers going up by 1.9% year on year, experts agree conditions were looking good for buyers.
Danny Belton, head of lender relationships at Legal & General Mortgage Club said: “The plethora of new products on the market combined with near-record low rates is creating favourable conditions for buyers, giving them greater flexibility and choice.
“This is contributing to the increased lending we are seeing to first-time buyers.”
Predictions of a looming Bank of England (BoE) interest rate rise have been attributed to the reason behind the rise in remortgaging.
Craig McKinlay, sales and marketing director at Kensington Mortgages said: “Amidst noise about the BoE’s next decision on interest rates, remortgaging levels continue to remain high as borrowers organise their finances before any potential rate rise.
“Prudent borrowers are now locking themselves into competitive mortgage deals that remain on offer through the mortgage market, whether it’s for two, three or five years.”
Meanwhile in the buy-to-let market, things were not so buoyant in February with numbers of purchase mortgages completed falling year-on-year by 8.8%.
Buy-to-let remortgages, however, increased in February compared to the same month in the previous year, with completions rising by 20.5%.
Jackie Bennett, director of mortgages at UK Finance, said the ‘stable but subdued’ buy-to-let market had been caused by the impact of recent legislative and tax changes.
