"If the market is to continue its positive trajectory, however, more measures need to be put in place to stimulate growth."
The data shows that there were 29,490 new first-time buyer mortgages completed in December 2019, 0.3% more than in the same month in 2018, while homemover mortgage completions rose 3.2%.
There were 16,820 new remortgages with additional borrowing in December 2019, 5.9% more than in the same month in 2018. For these remortgages, the average additional amount borrowed in December was £50,702. There were 16,490 new remortgages with no additional borrowing in December, 0.5% fewer than in December 2018.
Buy-to-let purchase completions rose 3.6% to 5,700 and buy-to-let remortgages saw an annual rise of 2.3%.
David Copland, director of mortgage services at TMA, commented: “Today’s figures highlight the continued buoyancy of the UK’s mortgage market. If the market is to continue its positive trajectory, however, more measures need to be put in place to stimulate growth. And as yet, there has been no indication from the government on what these measures could look like.
“Potential initiatives could include the removal of stamp duty for downsizers or launching a replacement scheme for Help-to-Buy. Taking the focus away from private landlords would also be welcomed, particularly since this group has felt the brunt of tax and regulatory changes over recent years. All eyes will be on the upcoming Budget to see what the government lays out for the mortgage and housing markets over the next 12 months – and importantly, whether Boris’ regime will actually deliver on its promises.”
Louisa Sedgwick, managing director of mortgages at Vida Homeloans, added: “Even with the political uncertainty of a general election in December, it’s encouraging to see the market remained resilient with first-time buyer and homemover mortgages continuing to rise. That is a trend we expect to continue in the first months of 2020, as those buyers who may have put their housing plans on hold move ahead.
“Despite this, not all buyers looking to become a homeowner this year will manage to make the dream of homeownership a reality. Getting a foot on the ladder remains a challenge for many buyers, particularly as they have to overcome strict lending criteria. These buyers will need the support of lenders that look beyond the surface of their home loan application. Every mortgage tells a story, and it’s specialist lenders that are in prime position to provide flexible solutions for those who may be turned away by high street banks.”
