First-time Buyers
First-time buyer numbers leap to pre-crash high
The number of first-time buyers leapt 29% from April to May to reach their highest levels since late 2007, the Council of Mortgage Lenders has revealed.
The increase meant first-time buyers accounted for almost half of all loans for house purchase that month. Total house purchase loans increased in value by a third, to £8.4bn.
CML director general Paul Smee said there was no doubt the mortgage market was 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.”
The remortgage market also saw a boost, with a 15.2% jump in remortgagors compared to the previous month and the value of remortgage loans climbing 17.6% to £4bn.
First-time buyers put down smaller deposits on their mortgages, with the average loan-to-value on these mortgages rising to 83%, from 81% in April. The ratio was the highest since November 2008.
But first-time buyer loans also increased slightly, and with a typical income of £35,700, the average buyer earned more than they did the previous year. The age of the typical first-time buyer remained at 29.