The competitive marketplace and low interest rates is helping remortgage buyers in London find the best deals to keep repayment costs down.

Demand from remortgage buyers in London continues to rise according to data from UK Finance with 15,300 new transactions in the first quarter 2018 up 4.1% on the previous year.

The value of of remortgaging was £4.67 billion in the first quarter and 7.6% more year-on-year whereas first time buyers and home movers remain subdued.

Remortgage buyer numbers have been improving since the second quarter 2017 and Jackie Bennett Director of Mortgages at UK Finance said, activity is the highest since the end of 2008.

First time buyers remain subdued

There were lower numbers of first time buyers with 9,800 completed in London for the first quarter 2018, 3% fewer than the same period last year and £2.8 billion of lending is unchanged.

On average first time buyers in the capital borrow £262,242 with a loan to value (LTV) of 72.7% which is lower than it was three years ago at 75.2%.

The average age of a buyer is 31 and loan affordability as a multiple of earnings is 4.02 based on household earnings of £65,608, which is £9,545 higher than the £56,063 of earnings in 2015.

First time buyers purchase properties worth on average £360,071 and have a significant deposit of 27.3% or £98,476 which would allow them to secure competitive rates on their mortgage deals.

Older homeowners also benefit from lower interest rates and equity release buyers can access wealth in their property using a lifetime mortgage to gift to a family member or friend or reduce inheritance tax owed by your beneficiaries.

Homeowners struggle to trade up

There are fewer home movers in London with 6,600 for the first three months of 2018, some 4.3 per cent less than in the same quarter of 2017 and £2.68 billion of new lending was 1.5% down.

On average home movers trading up in the capital borrow £350,995 and this has increased by £44,005 compared to 2015 when the amount was £295,000.

The average loan to value is 67.9% which is lower than it was three years ago at 75.2% and homebuyer deposit are 32.1% or £165,934 to buy a property valued at £516,929.

The average age of a buyer is 37 and loan affordability as a multiple of earnings is 4.02 based on household earnings of £90,218, which is £7,718 higher than the £82,500 of earnings in 2015.

Jackie Bennett said, the market for first-time buyers and homemovers was subdued compared to the strong growth seen for the last few years, however the good news is affordability has improved slightly.

Lower mortgage rates benefit buy-to-let investors as they can remortgage to reduce the cost of interest repayments to lenders.

What are your next steps?

Talk to our London City Mortgage brokers for advice if you remortgage your existing home and want the best mortgage deal or release capital, buying your first home, moving home or are a buy-to-let investor.

For older homeowners releasing equity from your property, our LCM mortgage advisers can recommend the lifetime mortgage, accessing wealth to consolidate debt or pay university fees for grandchildren.

Start with a free mortgage quote or call us and we can take your details. Learn more by using the equity release calculator, mortgage monthly cost calculators, and property value tracker chart.

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