Lending to first-time buyers on the rise

by Aaron Strutt

Apr 10 2014

The total number of mortgages advanced to first-time buyers in February totalled 22,200, a slight increase of 2.3% in volume compared to January.

This is also up 41% compared to February 2013, according to figures from the Council of Mortgage Lenders. The average first-time buyer borrowed 3.4 times gross income to secure a mortgage and the typical loan size for first-time buyers was £119,000 in February.

Also, the average income of a first-time buyer household fell slightly to £35,297. Paul Smee, director general of the CML, commented: "The new regulation of mortgages that takes effect at the end of April is a significant change.

The industry is ready for the transition, although there is clearly potential for lending to be distorted temporarily over the coming months, given the magnitude of the changes and the importance of complying with regulatory expectations.

April 10, 2014