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.”
If you are interested in knowing more or would like independent mortgage advice in Eastbourne, feel free to call one of our Brokers on 01323 409 849 or email office@sentryadvice.co.uk
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