First-time buyer mortgage lending on the up!
First-time buyer lending rose 23 per cent year-on-year to £4.3bn in May 2016, according to the Council of Mortgage Lenders
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.
Mary McPherson says: “These figures are encouraging given that they come during a time when there was much uncertainty pre-Brexit. The market is starting to settle down following the stamp duty changes in April.
“For many it is business as usual, particularly first-time buyers who are taking advantage of cheap mortgage rates. There is more choice in the market at higher loan-to-values with the help-to-buy scheme giving confidence to first-time buyers and homemovers alike”.
“Buy-to-let has calmed down as a whole but this is entirely understandable following the spike in activity in March as investors push for completions pre-stamp duty changes. I expect the buy-to-let market to pick up later in the year once the dust has settled.”
Tom Webster says: “The market is experiencing a settling, following the spike in March due to the stamp duty changes and the following dip in April.
“For the first time in 20 years first-time buyers borrowed more than homemovers for 2 months in a row. Since the change to stamp duty Buy-to-let continues at lower levels as to be expected.
“The next few months will be interesting following Brexit and the effects on the market will take a while to filter through. There is speculation of the bank base rate being reduced by 0.25% tomorrow, which would be the first movement in the rate since the record breaking move to 0.5% in March 2009 following the credit crunch.”
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