First-time buyer numbers plummeted by more than 10% according to figures from the banking and mortgage trade body, UK Finance, and movers fell by a similar amount.
The number of people remortgaging onto a new deal also dropped by 12%, according to the data which compared November 2019 to the same month in 2018.
Borrowing extra cash
However, there was an increase in homeowners who were remortgaging in order to borrow additional money. According to UK Finance there was a 5.7% rise in people keen to secure extra cash, something many homeowners use for home improvements.
Richard Pike, marketing director for mortgage technology company, Phoebus Software, said: “The fact that remortgages with additional borrowing increased shows that perhaps people were more inclined to make more of what they have rather than move.”
In November there was a great deal of uncertainty, with the general election looming, over Brexit and other economic factors.
The general view of the mortgage industry was that the reduction in movers and first-time buyers was a symptom of this, with potential buyers holding off until things were more settled.
Forecast for 2020
John Phillips, national operations director at Just Mortgages, said the figures offered evidence of the damaging effect of political uncertainty on the market and provided a sure sign of people holding off on making big decisions.
“Since these figures were collected, of course, there’s been an election and there’s a much greater sense of direction after what seems like an eternity of drift and delay,” he added.
“We’re already seeing a strong start to the year and confidence beginning to return to the market. There’s a real sense that people are putting the whole Brexit issue behind them and getting on with their lives.”
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