The result of a growing housing market has helped push both the number and value of mortgages to its highest level since 2007.  In the third quarter of the year, for months July through September, there were 188,000 mortgages at a value of £32.4 billion advanced to home movers and first time buyers.  This growth was despite a cooling down in the housing market from previous months.

The number of first time buyers declined which could be due to the tighter lending guidelines, higher pricing of properties, or a lack of ability for them to save a deposit.  In September there was a decline of 3% of first time buyers in comparison to the 26,800 recorded in August.  First time buyers were buying at 3.4 times their gross income which was slightly lower than the level in August of 3.42.  The average loan of a first time buyer was £125,999.

There were also fewer home movers in September.  For the second month in a row, the volume of mortgages fell by 10% at 31,700.  The value of mortgages for home movers fell by 12% to £6 billion.  The average loan for home movers was valued at £154,800 with most borrowing at 3 times their gross income.

Remortgaging increased by 20% in September but in comparison to the same month last year there was a decline by 12%. 

Demand from homeowners seeking a remortgage, as well as home movers and first time buyers seeking mortgages has remained low despite the cheap interest rates being offered by lenders.  This lack of demand has helped drive up competition between lenders.  In an effort to attract the attention of borrowers lower interest rate products have been introduced in the past few weeks making this a good time to shop around for a good mortgage or remortgage deal.