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First-time buyer lending up 23%: CML

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First-time buyer lending rose 23 per cent year-on-year to £4.3bn in May 2016, according to the Council of Mortgage Lenders.

However, the figure fell 15 per cent on April.

Remortgage lending rose by 30 per cent year-on-year to £5.2bn in May, but fell 15 per cent on April.

Homemovers and landlords  saw lending drop by 2 per cent and 4 per cent year-on-year.

However, both rose by 19 per cent and 4 per cent from April.

CML director general Paul Smee says: “There was a sense of the market regaining some equilibrium in May, following the stamp duty driven spike in March and the subsequent dip in April.

“For the second month running, first-time buyers borrowed more than homemovers, the first time in 20 years that this has been the case. Buy-to-let continues at lower levels as expected, after the change to stamp duty.

“Brexit, and its likely effect on the market, is a question to which the answer will not immediately be forthcoming. Lenders will continue to be open for business as usual, but lending volumes may be affected by uncertain consumer sentiment.”

Anderson Harris director Jonathan Harris says: “The market is settling down following the stamp duty hike in April and these figures are encouraging given that they come during a time when there was much uncertainty pre-Brexit.

“They demonstrate that for many it is business as usual, particularly first-time buyers who are taking advantage of cheap mortgage rates, more choice at higher loan-to-values, and less competition from landlords.

“Buy-to-let is more subdued but that us entirely understandable following the spike in activity in March as investors attempted to pay less stamp duty. We expect this to pick up later in the year.”

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