This came to 66,000 loans in total, up 13% compared to July and 9% compared to August 2015. The average amount borrowed by home movers in the UK increased to £175,000 in August from £172,000 in July, while the average home mover household income also increased to £55,400 from £55,000. The income multiple for the average home mover went from 3.29 to 3.27 month-on-month.
The number of home-owner remortgages rose to reach its highest monthly level since July 2009, although by value remortgaging was lower than the previous month.
First-time buyers borrowed £5.1bn, up 13% on July and 24% on August last year, which equated to 31,800 loans, up 12% month-on-month and 19% year-on-year.
Paul Smee, director general of the CML, commented:
“House purchase activity bounced back from a dip in July, reflecting resilience in first-time buyer activity. Mortgage rates remain at or close to historic lows, and the re-pricing of mortgages following August’s base rate cut should help to underpin a continuing, strong appetite for home-ownership over the coming months.
“Buy-to-let by contrast continues to operate at lower levels five months after the stamp duty change on second properties. This appears to be a long-term trend, and with lenders potentially tightening affordability checks ahead of the tax changes in April 2017, activity on the buy-to-let house purchase side may well remain at current levels.”