Lending to first-time buyers at highest level for six years

Lending to first-time buyers is at its highest for six years.

According to the Council of Mortgage Lenders (CML), lending in June to first-time buyers was up 30% on the same month last year, while the total lent in the second quarter of this year was the highest quarterly total since 2007.

A total of 25,300 loans were advanced to first-time buyers in June, up from 19,400 loans advanced last June.

During the second quarter as a whole, 68,200 mortgages were lent to first-time buyers.

Their average loan size was £117,000 in June, up from £112,500 in May.

The growth in first-time mortgages mirrored the rest of the lending market. A total of 151,600 loans were advanced for house purchase in the second quarter, up 30% on the first quarter and a 17% rise on the same period last year.

Peter Lawrence at Lawrence Rand said: “This data from the CML reinforces the belief that there is positive forward movement in the housing market. The re-emergence of first time buyers in the market is enabling chains of transactions to proceed.”