First-time buyers continue to drive house purchase lending.
News release today from the Council of Mortgage Lenders (CML) headlined ‘First-time buyer lending up 25% in June compared to a year ago’
On an unadjusted basis, in June: Home-owners borrowed £12.3bn for house purchase, up 29% month-on-month and 12% year-on-year. They took out 68,200 loans, up 26% on May and 8% on June 2015. more…
On an unadjusted basis, in second quarter: Home-owners borrowed £30bn for house purchase, down 2% quarter-on-quarter and 7% year-on-year. They took out 169,600 loans, up 4% on the first quarter and 3% on the same quarter in 2015. more….
Paul Smee, director general of the CML, commented: “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. More loans were advanced to them in June than at anytime since August 2007. Buy-to-let house purchase activity remains lower than before the stamp duty changes at the beginning of April, but showed a large month-on-month increase. As might be expected, buy-to-let remortgage seems to have been less affected by the changes and remains consistent with lending last year”.
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