Homebuyers are borrowing less money from their mortgage provider, with more people looking for bargains when it comes to their property purchases.
According to the latest figures from the Council of Mortgage Lenders (CML), homeowners borrowed £10.6 billion in July, a decline of 13 per cent since June and 12 per cent since July 2015.
This could be the result of househunters wanting to become more resourceful and improve their property themselves. Therefore, more people could be looking for driveway cleaning in the Wirral in the future to help them with their home improvements, after securing a cheaper house that needs more work.
The data showed first-time buyers (FTBs) also borrowed 19 per cent less in July than June, and four per cent less than during July 2015.
Paul Smee, director of the CML, noted that the declines may also be the immediate impact of the EU referendum.
“It is hard to determine whether these figures reflect a first uncertain reaction to the referendum vote, or are a sign of a market which was already cooling,” he stated.
CML figures also revealed re-mortgage activity had increased, rising seven per cent from June to July and 20 per cent over the 12 months. This could be an indication of homeowners releasing equity in their house to make more improvements.
Indeed, figures from Lloyds Bank earlier this summer showed the amount of money spent on DIY increased by 13 per cent in 2015. The overall spending on home maintenance reached nearly £8 billion last year, which is the highest figure seen since 2008.