Busy month for mortgages

[Mapatasy]

https://www.buyassociation.co.uk/2018/04/20/a-busy-month-for-mortgages-homebuyers-hit-record-50000/

In February more than 50,000 mortgages were taken out across the UK, according to figures from UK Finance, with around 25,200 first-time buyers and 24,800 home-movers all taking out borrowing for their property purchases – the most active February seen since 2007. There were also 35,400 remortgages completed in the month, an 11.3% rise on 2017.

The total figures equates to a huge £4bn in total new lending, while remortgages amounted to £6bn.

[LetsBuild]

The spike in remortgages is to be expected. We are 2 years on from the big BTL rush to buy a second home before extra stamp duty was introduced in April 2016 and this is all of them coming to the end of their 2 year deal. Also it was advertised in the papers that the banks were going to have to start upping rates when they ran out of free BoE money at the end of Feb so that may have prompted a few people.

[Ah-so]

22 hours ago, LetsBuild said:

The spike in remortgages is to be expected. We are 2 years on from the big BTL rush to buy a second home before extra stamp duty was introduced in April 2016 and this is all of them coming to the end of their 2 year deal. Also it was advertised in the papers that the banks were going to have to start upping rates when they ran out of free BoE money at the end of Feb so that may have prompted a few people.

Good analysis.

Of course, remortgages are only money recycling around the system. What matters more is the new mortgage figures. There are more FTBs and fewer BTL purchases than last year.

[InlikeFlynn]

On 4/20/2018 at 4:09 PM, Mapatasy said:

https://www.buyassociation.co.uk/2018/04/20/a-busy-month-for-mortgages-homebuyers-hit-record-50000/

In February more than 50,000 mortgages were taken out across the UK, according to figures from UK Finance, with around 25,200 first-time buyers and 24,800 home-movers all taking out borrowing for their property purchases – the most active February seen since 2007. There were also 35,400 remortgages completed in the month, an 11.3% rise on 2017.

The total figures equates to a huge £4bn in total new lending, while remortgages amounted to £6bn.

Thanks for this. Clearly lending for both moving and remortgaging is up. Bit of a downer for those of us hoping for a price drop. There's some really interesting data on average income multiples, LTV, affordability etc. on the UKFinance website, from which the article you cite is drawn.

https://www.ukfinance.org.uk/winter-blues-beaten-by-best-february-for-homeowner-house-purchases-in-a-decade/

[Fromage Frais]

Its an often held bizarre mentality that views a big huge low rate mortgage as some form of opportunity.  

Ie rates are going up and rather than thinking hmm maybe this wont end well...its....christ lets use this massive mortgage offer we have now as in a recession I might loose my job and not be able to get it then, we will also be able to buy this wonderful appreciating asset!

Debt is Wealth indeed this is the black Friday of mortgage deals...get em whist they are cheap!

 

[btd1981]

Some people will be saying "better get that massive mortgage before rates go up and I can't afford it". Is dumb, but I guarantee it.

[Houdini]

There are 2 things to remember:-

1) People can't think long term - most people can only look ahead a year or so.

2) people assume what is true now will hold long term. It's why investments have to explicitly state past performance isn't future performance and why people rushed into Bitcoin in last November.

[zugzwang]

Ship of Fools.

[rantnrave]

1 hour ago, btd1981 said:

Some people will be saying "better get that massive mortgage before rates go up and I can't afford it". Is dumb, but I guarantee it.

It's like in April 2016, when hordes of landlords rushed to buy before the Stamp Duty surcharge - and ended up paying 5% more in order to save 3%.

[happyguy]

,london sales were up on all new build house types