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FTBs driving mortgage market growth

FTBs driving mortgage market growth

Category: Mortgages

Updated: 12/08/2013
First Published: 12/08/2013

MONEYFACTS ARCHIVE
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First-time buyers (FTBs) continued to drive the growth in the mortgage market during the second quarter of this year, with lending to those purchasing their first home hitting its highest quarterly total since 2007.

The latest figures from the Council of Mortgage Lenders (CML) show that home loans approved to FTBs reached 68,200 in the second quarter.

On a monthly basis, June 2013's figure was 40% higher than that recorded in the same month last year.

Overall, a total of 151,600 loans were advanced for house purchase in the second quarter, up 30% compared to the previous quarter and an increase of 17% on the same period last year.

Despite the number of loans approved to those remortgaging dipping slightly in June, growth in April and May resulted in an increase for the second quarter.

"First time buyers have become a strong driver in the growth of mortgage lending this year proving that market conditions are favourable for them," said Paul Smee, director general of the CML.

"With increased interest in home buyers ability to cope with the eventual rise of interest rates, it is particularly reassuring to see borrowers choosing to fix their payments and for longer in record numbers."

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