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News: First-time buyer lending hits highest since 2007

Thu, 18 Feb 16

Lending to first-time buyers in the UK hit its highest levels since 2007, according to the Council of Mortgage Lenders.

The latest CML figures show that first-time buyers borrowed £46.7bn for home-owner house purchase in 2015, which was up 4 per cent on 2014. This totalled 311,700 loans, unchanged from the previous year.

Home movers took out 365,800 loans, down 0.2 per cent on 2014, but the amount borrowed totalled £72.1bn was up 7% on 2014. Lending was also at its annual highest since 2007. 

Home-owner remortgage activity was up 11 per cent by volume and 20 per cent by value compared to 2014. The value of remortgage lending was at its highest since 2008.

Gross buy-to-let also saw year-on-year increases, up 28 per cent by volume and 39 per cent by value.

Paul Smee, director general of the CML, comments: "Improving economic conditions, boosted by government schemes like Help to Buy, saw the highest quarterly number of loans  to purchase a home for eight years. The market has seen a gradual upward trajectory over the past few years, rather than rapid growth, and we’d expect this trend to continue with gross lending steadily increasing over the next two years."

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