First-time buyers lending at highest level since 2007

by Aaron Strutt

Aug 12 2013

Lending to first-time buyers has hit its largest quarterly total since 2007 with 68,200 purchasing their first home in the second quarter of 2013, according to figures released by the Council of Mortgage Lenders.

The CML's data shows that 25,300 loans were advanced to first-time buyers in June, a 30% increase on the 19,400 loans advanced in June last year. Following the strength in first-time buyer activity in May and June, quarterly lending to first-time buyers was at its highest since 2007.

First-time buyers continued to increase the amount they borrowed " with an average loan size of £117,000 in June up from £112,500 in May. As a result of this there has been a stronger growth in the value of loans advanced to first-time buyers which totaled £3.5bn " an increase of 9% in value compared to May and 40% on June last year.

Aaron Strutt, product manager at Trinity Financial, says: "Many of the mortgage lenders have been lowering their rates for the last few years to attract more first-time buyers and these changes seem to be finally seeping through. More borrowers are realising that they can afford the monthly mortgage repayments, providing they can raise a sufficient deposit.

"Even though most people are not using the government schemes to get on the property ladder, they are having a positive effect. More borrowers are hoping that if they can purchase a home for the first time its value will continue to increase."

August 12, 2013