According to data from UK Finance, there were approximately 15,300 new homeowner remortgages that were completed in the first quarter of this year in London, an increase of 4.1 percent as compared to the same period in 2017.
The £4.67bn of the remortgaging during the first quarter was higher by 7.6 percent year-on-year.
The director of mortgages at UK Finance, Jackie Bennett, stated: “Remortgaging activity is at its highest since the end of 2008, as Londoners continue to benefit from low rates and a competitive marketplace.”
However, the first-time buyers in London have been slightly more hesitant, with the number of mortgages for the younger buyers down by three percent as compared to the same period during the previous year.
According to UK finance, the average first-time buyer in London is 31 years old and has a gross household income amounting to £66,000.
Homemover mortgages were also down during the first three months of this year, with 4.3 percent fewer numbers completed as compared to the first few months of the previous year.
Bennett stated: “The market for first-time buyers and home movers was subdued at the start of 2018, compared to the strong growth seen for the last few years.”
She stated: “However, affordability has improved slightly, which is good news for those homebuyers transacting.”
The founder and chief executive officer of online mortgage broker Trussle, Ishaan Malhi, says that steep prices in the capital are still making it more difficult for first-time buyers to get on the ladder.
Malhi stated: “House price growth may be relatively slow at the moment, but prices are still rising faster than wages, making the journey to home ownership increasingly tricky for first-time buyers.”
The CEO added: “On average, a year’s take home pay is little over 50 per cent of the average first-time buyer deposit. For younger people, the situation is especially tough.”