Wednesday 15 January 2020 9:30 am

New mortgages fall in November after 2018 surge

The number of first time buyer mortgages dropped in November last year, following a surge in house purchase activity in 2018.

There were 30,620 new first-time buyer mortgages completed in November 2019, a decline of 10.5 per cent compared to the same month the previous year.

Read more: First time buyer mortgages hit 12-year high

Homemover mortgages also suffered a drop in November, falling 10.6 per cent year-on-year, reflecting strong activity in November 2018.

During the month there were 18,620 new remortgages with additional borrowing, 5.7 per cent more than November 2018. The average additional amount borrowed was £51,470.

Meanwhile, there were 18,470 new pound-for-pound mortgages in November, a 12.4 per cent fall, according to the latest figures published this morning by UK Finance.

The research also found that there were 6,300 new buy-to-let home purchase mortgages in November, declining 4.5 per cent.

Remortgages in the buy-to-let sector fell 5.1 per cent to 15,000.

Mike Scott, chief property analyst at estate agent Yopa, said: “The UK Finance Mortgage Trends Update for November is less positive, with a year-on-year drop of just over 10 per cent in the number of mortgages completed for house purchase.

“However, this is because November 2018 was a particularly strong month, and the overall trend is still good. 61,370 mortgages were completed for in November, which is more than in any month between January and May in 2019.

“We are already seeing a strong start to the 2020 market, and with the Brexit uncertainty lifted for the time being we expect this to continue throughout the usual spring bounce in housing market activity. However, we will have to wait until mid-March to see what these particular statistics have to say about January’s activity.”