Home buyers delayed making new purchases due to uncertainty of the general election result with 10% fewer mortgage loans agreed.

Uncertainty about Brexit and outcome of a general election in December convinced many home buyers to delay making a new purchase with 10% fewer mortgages agreed according to UK Finance.

The number of first time buyer mortgages completed in November 2019 were 30,620 reducing by 10.5% or 3,580 compared to 34,200 this time a year ago.

A similar result for home movers with 30,750 new mortgages which was 10.5% or 3,640 lower than last year at 34,390 and new purchases were also down on the previous month.

Fewer people remortgage their home

There were 18,470 remortgage buyers refinancing at the end of their introductory rate, lower by 12.4% or 2,610 compared to October 2018 and 11.1% or 2,320 lower than last month.

In contrast the number of people that remortgage their home and take a further advance was 18,610 which has increased by 5.7% or 1,000 during the last year although this is 2.3% lower than last month.

The average mortgage was £182,890 with a loan to value of 57.7% based on an average property value of £316,697 which means homeowners have equity of £134,077.

Based on the loan to income the multiple was 2.79 which is higher than the 2.73 a year ago due to the additional advance and the average age of people was 42 years.

For buy-to-let landlords remortgaging their rental properties the numbers have reduced by 5% or 800 from 15,800 in October 2018 to 15,000 a year later.

Home movers with largest borrowing

The largest mortgages are for home movers with an average of £228,043 and based on a loan to value of 67.5% they are buying properties worth £337,811.

Second steppers trading up to larger homes have income multiples of 3.32 indicating a household income of £68,688 which is an increase from November last year of 3.27.

Help for home movers can be offered by family members with the equity release buyer accessing wealth using a lifetime mortgage to gifting a child or grandchild the deposit on their next home.

The smallest mortgage as would be expected is for first time buyers borrowing £172,176 with the highest loan to value of 77.7% to purchase their first home averaging £221,591.

First time buyers are the youngest aged 32 years, stretching their affordability more than other types of buyers with an income multiples of 3.53 and average incomes of £48,775.

What are your next steps?

Speak to our LCM mortgage advisers if you are planning to move home, buying your first home, remortgaging your existing home to a new cost effective mortgage deal 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 mortgage monthly cost calculators, equity release calculator and property value tracker chart.

For equity release buyers our London City Mortgage brokers can recommend lifetime mortgages allowing you to receive cash from your property to purchase a new car or help your children start or expand a business.