Sign in to follow this  
Followers 0
UKPT

NEWS First time buyer lending in UK up by 25% in June compared to a year ago

There was a growth in the home lending market in the UK in June with the first time buyer market seeing a particular boost in activity, according to the latest figures from the Council of Mortgage Lenders (CML).

Home owners borrowed £12.3 billion, up 29% month on month and 12% year on year. They took out 68,200 loans, up 26% on May and 8% on June 2015.

First time buyers borrowed £5.5 billion, up 28% on May and 25% on June last year. This equated to 34,300 loans, up 24% month on month and 17% year on year.

Home movers borrowed £6.9 billion, up 33% on May and up 5% compared to a year ago. This represented 33,900 loans, up 28% month on month and up 0.3% on June 2015.

Remortgage activity totalled £5.6 billion, up 8% on May and 6% compared to a year ago. This came to 32,400 loans, up 4% month on month but down 2% compared to a year ago.

Landlords borrowed £2.9 billion, up 12% month on month but down 15% year on year. This came to 18,300 loans in total, up 8% compared to May and 17% compared to June 2015.

On an unadjusted basis in the second quarter of the year home owners borrowed £30 billion, down 2% quarter on quarter and 7% year on year. They took out 169,600 loans, up 4% on the first quarter and 3% on the same quarter in 2015.

First time buyers borrowed £13.7 billion, up 23% on the first quarter of the year and up 21% on the same quarter in 2015. This equated to 87,100 loans, up 23% month on month and 14% year on year.

Home movers borrowed £16.4 billion, down 16% on first quarter and 2% compared to a year ago. This represented 82,600 loans, down 10% quarter on quarter and 6% on the second quarter 2015.

Remortgage activity totalled £16.9 billion, up 10% on the first quarter and 25% compared to a year ago. This came to 98,700 loans, up 10% quarter on quarter and 17% compared to a year ago.

Landlords borrowed £8 billion, down 46% compared to the first quarter of the year and down 9% year on year. This came to 51,600 loans in total, a drop of 45% compared to the first quarter and down 11% year on year compared to the second quarter of 2015.

The CML now publishes seasonally adjusted monthly and quarterly data (see attached), alongside the normal unadjusted data. Paul Smee, CML director general said that this makes it easier to spot underlying trends.

‘These figures reveal growth in house purchase activity and in particular for first- time buyers. As ever, there is uncertainty and it will take more time and patience to understand how the market will evolve in the current environment as these figures predominantly cover activity in the run up to the referendum,’ he explained.

‘We still believe that the mortgage market is well capitalised, resilient...

View the full article

Share this post


Link to post

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!


Register a new account

Sign in

Already have an account? Sign in here.


Sign In Now
Sign in to follow this  
Followers 0
  • Who's Online   0 Members, 0 Anonymous, 1 Guest (See full list)

    There are no registered users currently online