Mortgage sales dip in June
Mortgage sales for the UK decreased by £200m in June, down 1.2% on the previous month, according to Equifax Touchstone analysis of the intermediary marketplace.
Buy-to-let figures bucked the general trend, rising by 3.2% (£80m) to £2.6bn, while residential sales contracted by 2.0% (£280m) to £13.9bn. Overall, mortgage sales for the month totalled £16.5bn.
Most regions across the UK witnessed slight dips in sales apart from Northern Ireland and the South Coast where mortgage sales rose by 10.3% and 2.0% respectively. Wales saw the largest decrease in sales (-3.9%) followed by the Home Counties (-2.7%) and the North West (-2.6%).
Regional area Total mortgage sales growth
Northern Ireland 10.3%
South Coast 2.0%
North East -0.1%
South East -0.2%
North and Yorkshire -1.0%
South West -2.2%
North West -2.6%
Home Counties -2.7%
John Driscoll, director at Equifax Touchstone, said:
“Although there has been a slight drop off in sales for June, these figures show how robust the mortgage market remains during a period of continued uncertainty. The ongoing low interest rate environment coupled with low levels of unemployment are keeping the market steady for the time being, limiting a more severe impact from political volatility.
“The long-term outlook for the market remains unclear as issues such as the weakened Conservative government play out; but there is cautious optimism that healthy sales figures will remain throughout the summer months.”
The data from Equifax Touchstone, which covers the majority of the intermediated lending market, shows that the average value of a residential mortgage in June was £200,089 (2016: £191,218) and £157,091 for buy-to-let (2016: £160,849).
Equifax Touchstone utilises intermediary and customer profiling tools to provide financial services providers with a detailed understanding of their marketplace and client base.