First time buyers continue to increase

First time buyers continue to increase

Mortgages granted to first-time buyers reached 25,100, their highest monthly figure since late 2007 in May.

This was up 42% from the same time last year and 29% from April. First-time buyers now account for 45% of all loans for house purchase, accounting for £3.4 billion in value in May.

According to the latest data from the Council of Mortgage Lenders, lending to first-time buyers, home movers and those remortgaging all increased in May.

The £8.4 billion of lending for house purchase accounted for 57% of all mortgage lending in May (by value), while remortgaging at £4 billion accounted for 27%, and other lending (including lifetime, buy-to-let and further advances) at £2.3 billion accounting for 16%.

Paul Smee, director general of the Council of Mortgage Lenders, said: "Although monthly lending is still running at far less than half its typical monthly level during the peak, there is no doubt that the mortgage market is firmly open for business.

“Both the borrowing appetite of first-time buyers, and the availability of attractive mortgages for them, have improved markedly since a year ago.

"What is interesting is that, in contrast to some recent assertions, this is happening in parallel with the strengthening buy-to-let market. It is perfectly possible for both the buy-to-let market and the first-time buyer market to improve at the same time, as the evidence clearly demonstrates.

"It is important that the supply of housing steps up, as increased housing supply is a crucial factor in ensuring that housing is affordable over the long term."

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