The total value of these loans was £3.7bn, up 3% on November 2013 and an increase of 48% on December 2012.
The typical first-time buyer income multiple increased, with first-time buyers typically borrowing 3.43 times their gross income in December 2013, compared to 3.38 in November 2013. The continued downward trend in mortgage interest rates has kept borrowers' payment burden low. First-time buyers in December spent 19% of gross income to cover capital and interest payments, slightly higher than the 19.1% in November 2013 but down from 20% in December 2012. In addition, over 95% of first-time buyers opted for fixed rate mortgages in December.
In the fourth quarter of 2013, the total number of loans advanced to first-time buyers was 79,400, up 8% on the third quarter of 2013 and an increase of 30% on the fourth quarter of 2012. The value of these loans totalled £10.9bn, up 7.9% on the third quarter of 2013 and up 42% compared to the fourth quarter of 2012.
Overall for 2013, first-time buyers were advanced 605,100 loans for house purchase, an increase of 11% compared to 2012. The total value of these loans came to £92.7bn, up 15% compared to 2012.
The number of loans advanced to home movers for house purchase totalled 31,500 in December, down 2% in volume compared to November but up by 19% compared to December 2012. Home mover loans totalled £5.6bn in value in December, which was unchanged from November but up 27.3% compared to December 2012.
Commenting on the data, CML director general Paul Smee said:
"In 2013, there has been a resurgence in the mortgage market with year-on-year growth for all types of borrower. First-time buyers were an especially important factor in driving the market forward in 2013 as improved economic conditions, as well as the introduction of government schemes like Help to Buy, have given the opportunity for them to enter the market and become home-owners."
Andy Knee, Chief Executive of LMS, comments on the CML lending breakdown in December:
“2013 clearly marked the revival of the first time buyer. A delectable concoction of competitive rates, an abundance of attractive deals and most importantly vital support from the Government - in the form of Help to Buy – has attracted waves of aspiring homeowners out of the woodwork. The rapid movement from new buyers is also clearly invigorating the entire market, with the upswing seen in December spurring on other home movers and second steppers to move up the ladder."
