The number of mortgages for first-time buyers dropped by 10.5 per cent to 30,620 over the year to November, the latest figures from UK Finance reveal.

The number of mortgages for home movers also fell by 10.6 per cent to 30,750 over the same period.

UK Finance says this decline reflects unusually strong home buying activity in November 2018.

Like-for-like remortgages, where home owners did not increase their loan size, were down by 12.4 per cent year on year to 18,470.

Remortgages with additional borrowing increased by 5.7 per cent to 18,610.

The average amount of extra borrowing was £51,470. 

Mortgages for buy-to-let purchases were down by 4.5 per ent to 6,300, while landlord remortgages fell by 5.1 per cent to 15,000. 

Just Mortgages national operations director John Phillips says: “These figures are evidence – if any were needed – of the damaging effect of political uncertainty on the market. 

“Completions falling by 10 per cent year on year, for first-time buyers and home movers alike, is a sure sign of people holding off on making big decisions.”

He adds: “Since these figures were collected, of course, there has been an election and there’s a much greater sense of direction after what seems like an eternity of drift and delay.

“We are already seeing a strong start to the year and confidence beginning to return to the market. There’s a real sense that people are putting the whole Brexit issue behind them and getting on with their lives.”

SPF Private Clients chief executive Mark Harris says: “Hopefully [the fall in first-time buyer numbers] is a blip and should pick up again as lenders remain extremely keen to lend with plenty of mortgages at high loan-to-values and competitive rates. 

“First-time buyers are the lifeblood of the market and their importance to its overall health shouldn’t be underestimated.

“Swaps have fallen on the back of three members of the monetary policy committee suggesting there could be a base rate cut this month. 

“A number of lenders have cut their rates already this year and we expect others to follow suit.”