Overall sales decline by 10.8%
Buy-to-let mortgage sales remain steady
19.8% decrease in overall sales in Scotland
Mortgage sales for the UK decreased by £1.8 billion in July, down
10.8% on the previous month, according to Equifax Touchstone analysis
of the intermediary marketplace.
Buy-to-let figures were resistant to the general decline, down
by just 0.2% (£3.9 million) to £2.6 billion, while residential sales
dropped by 12.8% (£1.8 billion) to £12.2 billion. Overall, mortgage
sales for the month totalled £14.8 billion, up 10.8% year-on-year.
All regions across the UK suffered a significant fall in sales.
Scotland suffered the biggest slump of 19.8%, followed closely by
Northern Ireland (-18.5%), and the South East (-15.4%).
Total mortgage sales growth
North and Yorkshire
John Driscoll, Director at Equifax Touchstone, said: “These figures
show how volatile the mortgage market can be. Sales have tumbled in
July, with every region suffering substantial declines as buyers are
put off by continuing political and economic uncertainty, coupled with
the worrying gap between inflation and wage growth. These
circumstances may be further compounded by the potential for an
interest rate hike as early as September, driven by continued pressure
on the pound.
“On a more optimistic note, mortgage sales are up over 10%
year-on-year and a dip in sales for July is not uncommon; however, as
the summer period comes to a close, the long-term outlook for the
market still remains very unclear.”
The data from Equifax Touchstone, which covers the majority of
the intermediated lending market, shows that the average value of a
residential mortgage in July was £199,286 (2016: £188,115) and
£159,721 for buy-to-let (2016: £158,415).
Equifax Touchstone utilises intermediary and customer profiling
tools to provide financial services providers with a detailed
understanding of their marketplace and client base.