Figures from the Council of Mortgage Lenders show that lending to first time buyers bounced back in the second quarter of 2015 after a sluggish start to the year - although the level is no higher than in the same period of 2014.
First time buyers increased in number and in the amount advanced by over 20 per cent in the second quarter, as the housing market recovered from the general election lull.
Lending to existing owner-occupiers who were moving home also increased just over 20 per cent compared to the second quarter, but actually dipped slightly below the level recorded at the same time in 2014.
What did increase rapidly, however, was remortgaging which is “perhaps reflecting an increased desire to lock into competitively-priced mortgage deals in advance of any rise in rates” according to CML director general Paul Smee.
Overall in June, the value of home owner loans for house purchase accounted for 54 per cent of gross lending, while remortgage activity accounted for 25 per cent.
Buy to let as a proportion of total lending remained at around 17 per cent but still makes up a larger portion of total lending compared to the same time last year.
“The rising value of mortgages reflects the growth in house prices which has been particularly acute in the case of starter homes” says Paul Smith, chief executive of Haart.
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