CML have issued figures that show lending to first time buyers bounced back in the second quarter of 2015 after a slow start to the year, although this level is no greater than in the same period in 2014. The amount of first time buyers has grown in numbers as the housing market recovered from the general election respite.
Lending to existing owner-occupiers who were moving home, also grew just over 20% compared to the second quarter and then fell slightly below the level recorded at the same time during 2014.
Remortgaging increased rapidly and CML director general Paul Smee suggested this is “perhaps reflecting an increased desire to lock into competitively-priced mortgage deals in advance of any rise in rates”.
In June, the value of home owner loans for house purchases accounted for 54% of gross lending, while remortgage activity accounted for 25%.
Buy to let as a portion of total lending remained at around 17%, but still makes up a larger portion of total lending compared to the same period last year.
Paul Smith, chief executive of Haart says “The rising value of mortgages reflects the growth in house prices which has been particularly acute in the case of starter homes”.