National Mortgage Index September 2017

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Little sign of summer lull, says Mortgage Advice Bureau

In a month underpinned by highly motivated buyers, we saw little evidence of August being quiet due to the summer break. Last month’s data suggests that many homeowners decided to take the opportunity to review their finances and remortgage, or were motivated to move home. We saw the UK property market continuing at a steady pace, very much in line with previous months with only a slight movement on some key metrics, consistent with seasonal expectations.

Key indicators are:

  • Average purchase price only slightly lower in August than July, dropping by 1.2% month on month
  • Marginal change in remortgage loan size, increasing by 0.6% month on month
  • Average FTB property purchase price decreased slightly to £208,994 in August 17, from £209,864 in July 17

On a regional basis, topline data for the South West is as follows:

South West Average Statistics – August 2017 data

 Purchase  Mortgage

 Remortgage

Average LTV %

69%

56%

Average loan size

£165,307

£161,611

Average age

38

43

Average income

£32,255

£31,487

Average property value

£242,048

£287,053

Nigel Bull from Mortgage Advice Bureau in Bristol comments:

“August was very much in line with seasonal expectations, and we observed that those we assisted with mortgages for purchase were very motivated to move during the summer holidays.  In addition to the majority of clients, who were buying a main residential property, we also assisted quite a few investors who required Buy-to-Let mortgages, with rental property still providing decent returns locally.

Remortgage numbers remained consistent, with some taking the opportunity to raise capital at record low interest rates; as usual, five year fixes proved popular given the ultra-competitive deals available. 

In terms of property values, pricing remains strong due to continued demand locally, and the popularity of recent new build developments means that we will now be waiting until later this year or even 2018 for the next tranche of new homes to become available, meaning that the ongoing shortage of properties for sale is likely to continue for some time.”

Mortgage Advice Bureau - National Mortgage Index September 2017

For more information, please contact: Kate Hall press@mab.org.uk / 07399 464640

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