There were 25,900 first-time buyer loans in November - down 11% on October, and 3% down on November 2013.
By value, there was £3.8 billion advanced to first-time buyers in November - 12% down on October but 6% up on November last year.
The typical loan size for first-time buyers also fell for the second consecutive time month-on-month to £124,822 in November, down from £125,800 in October.
However, FTB affordability changed only fractionally, with first-time buyers typically borrowing 3.37 times their gross income, compared to 3.39 in October.
First-time buyers in November paid 19.3% of their income towards covering capital and interest payments, little changed from 19.5% in October but still significantly less than the recent peak of 24.8% in December 2007.
Mortgage lending as a whole reached £16.5 billion in November, 11% lower than October (£18.6 billion), and 3% lower than November last year.
Paul Smee, director general of the CML, commented:
“The easing back of activity is not completely unexpected as there is usually a seasonal lending dip in the winter months and the major industry changes and more restrained market sentiment have inevitably caused month-to-month fluctuations over the last twelve months. Our forecasts are for gross lending to continue to grow over the next two years and this reflects our belief that there are more stable conditions in the market than a year ago.
Paul Hunt, Phoebus Software managing director, said:
“Today’s CML figures showing a 12% drop in the amount of lending for purchases as well as a dip in remortgages and first time buyers shows that we have definitely experienced a shift in the market. Last year is very much proving to be a year of two halves with a buoyant first half and a slightly more sober second half to the year.
"I expect this year to be the reverse of that with a more subdued first half of the year, especially in the build up to the general election and then a more positive second half to the year. The only part of the market bucking the trend is buy-to-let, as professional landlords look like they are capitalising on the lack of competition amongst residential purchasers.
“Housing demand is high and with falling inflation looking like keeping interest rates at their current levels into 2016, the overall outlook must be very positive for the Sector.”
Adrian Gill, director of Your Move and Reeds Rains estate agents, commented:
“After a torrent of first-time buyer activity in 2014, lending to new buyers has begun to ebb away as the market dials back to calmer levels. The mortgage market has braved a raft of regulatory changes over the last year, and the latest wave of loan-to-income caps in the autumn seem to have deterred demand somewhat further. But this downturn comes despite such good fundamentals.
“All the supports are in place to help first-time buyers sail onto the property market. With record low inflation holding off an interest rate rise, buyers can delight in falling mortgage rates and competitive long-term fixes on the market. There are also positive signs that mortgage repayments are reducing as a proportion of income, helped along by sturdier wage growth, and the new stamp duty rules has lessened the burden of immediate transactions costs, injecting further demand at the bottom rungs of the market. However, beyond the south of the country, the average price of a starter home often doesn’t even touch on the lowest tax threshold. So in these areas Help to Buy and higher LTV lending remain the key lifelines, making gathering that vital deposit more workable.”
