The number of remortgage buyers in the capital has reached an eight year high in 2017 driven by competitive mortgage rates.

Data from UK Finance shows there were 56,800 homeowner remortgage buyers in London during 2017 rising 5.4% over the year and the highest for eight years.

The total value of mortgage loans arranged was £17.2 billion an increase of 6.8% when compared to 2016 helped by record low mortgage rates and competition.

In the fourth quarter the number of remortgage buyers in the capital were high at 14,500 rising 9.8% over the same quarter a year earlier and the value of £4.4 billion was 16.4% more year-on-year.

Lower mortgage rates benefit buy-to-let investors as they can remortgage to reduce the cost of interest repayments to lenders.

Flat growth for First time buyers

Across the country the number of first time buyers in 2017 reached a decade high of 365,000 although in December were 30,800, down 5.2% compared to the same month a year earlier.

Paul Smee Head of Mortgages at UK Finance said, 2017 saw the number of first time buyers reach its highest level in a decade, which is welcome news for those getting started on the housing ladder.

Although the market remains competitive there is no room for complacency, with weaker December figures consistent with our market forecast of subdued growth this year, says Mr Smee.

In London, first time buyer mortgages completed in the fourth quarter were 10,700 matching the same period in the previous year and value of new lending was £3.0 billion for the quarter up 2.7% year-on-year.

The average age of a first-time buyer in the capital is 32 with an income of £65,831 and has a mortgage of £267,999 producing an income multiple of 4.09.

Loan to value (LTV) is 73.6% and the government’s Help to Buy scheme for new build homes has supported first time buyers with London’s high house price of £364,129.

Home movers decreased for the year

There was a decrease of 2.2% in the number of home movers in London over the year reducing from 31,200 in 2016 to 30,500 in 2017.

In the fourth quarter the numbers reduced by 9.4% from 8,500 to 7,700 with the value of mortgage lending decreasing from £3.4 billion to £3.0 billion over the same period.

For home movers in the capital the average age is 37 with borrower income of £89,000 and mortgage of £350,000 producing an income multiple of 4.09, the same as first time buyers.

Loan to value (LTV) is 67.4% with the average purchase price of a property in the capital of £519,287.

For the older homeowner that owns their home outright but is cash poor, they no longer needs to downsize and can now avoid moving home.

As an equity release buyer they can access wealth using a lifetime mortgage, maintain their lifestyle, for holidays of a lifetime or even give a child or grandchild a deposit for their first home.

What are your next steps?

Talk to our London City Mortgage brokers for advice if you remortgage your existing home and want the best mortgage deal or release capital, buying your first home, moving home or are a buy-to-let investor.

Start with a free mortgage quote or call us and we can take your details. Learn more by using the equity release mortgage calculator, mortgage cost calculators, and property value tracker chart.

For older homeowners releasing equity from your property, our LCM mortgage advisers can recommend the lifetime mortgage, accessing wealth to consolidate debt or help your children start or expand a business.

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