The number of first-time buyers in London and Scotland have risen to their highest levels in nearly three years, according to the Council of Mortgage Lenders.
In its first quarterly report on lending in London, the CML said that around 10,000 first-time buyers took out a mortgage in London in the third quarter, the highest level since the fourth quarter of 2009 when 10,600 FTBs secured a mortgage. The figure increased 25 per cent from 8,000 between the second and third quarters.
In the third quarter, a total of 20,600 house purchase loans, worth £5.7bn, were advanced in London, up 22 per cent compared to the second quarter. A total of 10,500 loans, worth £2.9bn, was advanced to borrowers remortgaging in the third quarter, down from £2.1bn in the second quarter.
In Scotland there were 5,100 loans advanced to FTBs in the third quarter, a 6 per cent increase on the 4,800 loans advanced in the second quarter, and the largest number since 5,500 advanced in the fourth quarter of 2009.
By value, FTBs in Scotland borrowed £460m, up from £450m in the previous quarter and £440m in the third quarter of last year.
There were 7,400 loans advanced to home movers, a 3 per cent fall compared to the third quarter – 7,600 loans – and down by 6 per cent on the same period last year – 7,900 loans. By value, home movers borrowed £1bn in the third quarter of 2012, down from £1.01bn in the previous quarter and £1.05bn in the same quarter of 2011.
A total of £670m was advanced to borrowers remortgaging, down from £740m in the last quarter and a 28 per cent fall compared to the £930m advanced this time last year.