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First Time Buyer

First-time buyers boost lending in June

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Home mover and first-time buyer activity is strong as lending remains robust.

First-time buyer lending was up 25% in June compared with a year ago, according to figures from the Council of Mortgage Lenders.

Borrowing by first-timers hit £5.5.bn which was also 28% higher than in May, as they took out 34, 300 mortgages.

Home movers borrowed £6.9bn, up 33% on May and up 5% compared to a year ago. This represented 33,900 loans, up 28% month-on-month and up 0.3% on June 2015.

Remortgage activity totalled £5.6bn, up 8% on May and 6% compared to a year ago. This came to 32,400 loans, up 4% month-on-month but down 2% compared to a year ago.

Paul Smee, director general of the CML, said: “These figures reveal growth in house purchase activity and in particular for first-time buyers. As ever, there is uncertainty and it will take more time and patience to understand how the market will evolve in the current environment – these figures predominantly cover activity in the run-up to the referendum. We still believe that the mortgage market is well capitalised, resilient and open for business, and will remain so for the foreseeable future.

“First-time buyers are continuing to drive house purchase lending, outperforming home movers for the third month running.”

Stephen Matthews, director at estate agent, Greene and Co, added: “Now that economic and political stability is beginning to be restored, and as we see the countries lowest ever mortgage rates fall even further, we should start to see the resilient mortgage market bounce back in the upcoming months.”