On a non-seasonally adjusted basis, UK Finance data shows that mortgage lending in June rose with first-time buyers borrowing £5.9bn, up 26% on the previous month and 9% on June 2016. This was roughly 36,000 loans, up 22% month-on-month and 6% year-on-year.
Home movers borrowed £7.8bn, up 26% on May and 15% year-on-year. This equated to 36,500 loans, up 24% month-on-month and 9% compared to a year ago, and remortgage activity totalled £6bn, up 5% by value on May and 7% on a year ago. The number of remortgage loans totalled 34,300, up 5% month-on-month and 6% on a year ago.
Gross buy-to-let lending was also up totalling £3.0bn, up 3% on May and up 3% compared to June 2016. These equated to 19,700 loans, up 3% month-on-month and 6% year-on-year.
The proportion of household income used to service capital and interest rates continued to be near historic lows in June for both first-time buyers and home movers at 17.3% and 17.5% respectively with affordability metrics for first-time buyers indicating the typical loan size has increased from £137,000 in May to £139,000 in June. The average household income increased to £41,000 from £40,500 meaning the income multiple went up from 3.58 to 3.59.
The average amount borrowed by home movers in the UK increased to £180,000 from £177,000 the previous month, while the average home mover household income increased month-on-month from £54,900 to £55,200. The income multiple for the average home mover went up to 3.39 from 3.37.