CML reports 33% jump in first-time buyers
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New data from the Council of Mortgage Lenders (CML) released Friday shows first-time buyers took out 27,100 loans in August, an increase of 7% on July and of 33% compared to August 2012.
The figures are even higher going by hard numbers. Loans to FTBs totalled £3.8 billion, up 9% compared to July and a massive 46% increase by value on August last year.
FTBs borrowed more relative to income in August compared to July - 3.36 times borrower income in August compared to 3.31 in July. However, the CML noted that "due to the downward trend in mortgage interest rates, total mortgage payments have remained low relative to income. The typical first-time buyer mortgage payment represented 19.3% of income in August, a figure it has fluctuated around since March."
The data also shows there was a record high of 86% of borrowers taking fixed rate mortgages with 94% of first-time buyers opting for a fixed rate mortgage.
The CML also reported:
- Total home-owner house purchase lending continued to grow, up 7% on July and 15% on August last year.
- Home movers took out 34,200 loans, an increase of 7% compared to July and up 5% on August last year.
- Home-owner remortgage lending was 7% down in August compared to July but was nearly 11% up on August last year.
- Total buy-to-let loans advanced went down slightly to 14,900 loans in August, compared to 15,200 in July, with a value of £1.9bn.
- Within this, 7,900 buy-to-let loans in August were for house purchase, up by 4% compared to July.
- Buy-to-let remortgage lending fell slightly to 6,900 loans in August from 7,200 loans in July.
Gross UK mortgage lending held steady in August and was an estimated £16.4bn, down 2% on July’s gross lending total of £16.7bn but 28% higher than August last year (£13bn).