While more people are remortgaging than at any time since 2009 as they look to take advantage of record-low rates, first-time borrowing dipped last month.
According to figures from UK Finance, the new trade association which has replaced the Council of Mortgage Lenders, 36,800 homeowners remortgaged last month, taking out loans worth £6.7 billion – 12% more than in both the preceding month and in July last year.
With the number of competitive deals on the market growing, many borrowers are choosing to remortgage to take advantage of the low rates currently on offer.
First-time buyers borrowed £5 billion, 15% lower than in June but 14% higher than in July 2016.
Landlords borrowed £3.2 billion in July, an increase of 7% on the previous month and 7% year-on-year.
Home movers borrowed £7.1 billion, 9% less than in June but 15% more than in July last year.
June Deasy, UK Finance’s head of mortgages policy, said: “Remortgaging strengthened in July and reached its highest level since January, with customers attracted by borrowing rates that are at or close to their historic low point. The increase in activity in July means that, over the last year, the number of people remortgaging has been at its highest since 2009.
“Lending for house purchase was lower in July than in the preceding month, and we expect the market to continue to soften a little in the coming months.”
Jeremy Duncombe, director of Legal & General Mortgage Club, said: “Even despite the uncertainty around Britain’s Brexit negotiations, these figures clearly show the mortgage market remains in a strong position.
“More buyers are accessing the funds they need to make their next move on the housing ladder, and this should be welcome news for the wider economy.”
