Editor's note: This brief was summarised by The Property AI Newsroom from a report by Mortgage Strategy. Read the original article for full details.
New Mortgage Commitments Rise, Buy-to-Let Share Increases
The value of new mortgage commitments in the UK rose by 12% in the first quarter of 2024 compared to the previous quarter, reaching £78 billion, according to the latest Bank of England figures. However, the value of gross mortgage advances during the same period fell by more than 12% to just under £70 billion.
Of the gross mortgage advances, 91% were to owner occupiers. Within this group, the share of loans for remortgage increased by 2.7 percentage points from the previous quarter and by 6.8 percentage points year on year, reaching 28%. The share of owner occupier advances for property purchase fell by 3.9 percentage points on the previous quarter and by 8.6 percentage points year on year, to around 58%. Both first-time buyer and home mover advances declined within this category.
For letting agents and inventory clerks, it is notable that the share of gross mortgage advances for buy-to-let increased by 0.5 percentage points from the previous quarter and by 0.8 percentage points year on year, reaching almost 9%.
The figures indicate ongoing shifts in the UK mortgage market, with a modest increase in buy-to-let activity despite recent legislative changes affecting landlords. The data also shows a continued trend towards remortgaging among owner occupiers.
Source: Mortgage Strategy