First-time buyer lending up 28% in June: CML


First-time buyers borrowed £5.5bn in June, up 28 per cent on May and 25 per cent on June last year, according to the Council of Mortgage Lenders.

This equated to 34,300 loans, up 24 per cent month-on-month and 17 per cent year-on-year.

The trade body found homeowners borrowed £12.3bn in June, up 29 per cent month-on-month and 12 per cent year-on-year.

This group took out 68,200 loans in the period, up 26 per cent on May and 8 per cent on June 2015.

Home movers borrowed £6.9bn, up 33 per cent on May and up 5 per cent compared to a year ago.

This represented 33,900 loans, up 28 per cent month-on-month and up 0.3 per cent on June 2015.

Remortgage activity totalled £5.6bn, up 8 per cent on May and 6 per cent compared to a year ago.

This came to 32,400 loans, up 4 per cent month-on-month but down 2 per cent compared to a year ago.

Landlords borrowed £2.9bn, up 12 per cent month-on-month but down 15 per cent year-on-year.

This came to 18,300 loans in total, up 8 per cent compared to May and 17 per cent compared to June 2015.

CML director general Paul Smee says: “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 – these figures predominantly cover activity in the run-up to the referendum.

“We still believe that the mortgage market is well capitalised, resilient and open for business, and will remain so for the foreseeable future.”

Kensington head of sales and distribution Steve Griffiths says: “It is good to see that lending was still increasing in the lead up to the EU referendum. However, with the result of June’s vote now decided, there remains considerable uncertainty moving forward.

“This uncertainty presents an opportunity for brokers to deliver real value to their clients by providing clarity and clear advice. This is particularly true for borrowers whose complicated incomes or working lives make them a more specialist case.”

Mortgages for Business managing director David Whittaker says: “June’s data shows that the stamp duty changes may have a softer long-term impact on the buy-to-let impact than many expected.

“For the second month there was a strong increase in lending to landlords, which saw a sharp decline following the introduction of the new Stamp Duty Land Tax at the end of March.

“Ultimately, strong market fundamentals and demand for rental accommodation will continue to provide good returns for landlords who take an intelligent approach to investment.”