CML: FTBs drive 29% monthly lending rise

June mortgage lending rose by 29% on a monthly basis and 12% year-on-year, driven by strong first-time buyer figures, according to the latest CML statistics.

Related topics:  Mortgages
Rozi Jones
10th August 2016
first time buyer ftb buyer
"First-time buyers are continuing to drive house purchase lending, outperforming home movers for the third month running."

First-time buyers borrowed £5.5bn, up 28% on May and 25% on June last year. More loans were advanced to first-time buyers in June than at anytime since August 2007.

First-time buyers also saw strong quarterly figures, with borrowing up 23% on the first quarter of the year and up 21% on Q2 2015.

Homemover lending also saw a strong monthly rise, up 33% compared to May. Remortgage activity totalled £5.6bn, up 8% on May and 6% compared to a year ago.

Landlords borrowed £2.9bn, up 12% month-on-month but down 15% year-on-year. On a quarterly basis, landlords Q2 borrowing totalled £8bn down 46% on Q1 and 9% year-on-year. This came to 51,600 loans in total, a drop of 45% compared to the first quarter and down 11% year-on-year compared to Q2 2015.

Paul Smee, director general of the CML, commented: "First-time buyers are continuing to drive house purchase lending, outperforming home movers for the third month running. More loans were advanced to them in June than at anytime since August 2007. Buy-to-let house purchase activity remains lower than before the stamp duty changes at the beginning of April, but showed a large month-on-month increase. As might be expected, buy-to-let remortgage seems to have been less affected by the changes and remains consistent with lending last year."

Jeremy Duncombe, Director, Legal & General Mortgage Club, added: “Despite the uncertainty caused by June’s EU referendum result, these latest figures from the CML clearly show that it is business as usual for the mortgage market. Whilst uncertainty may have brought hesitation amongst some borrowers, lending is still on the rise.

“It is interesting to see that remortgaging is also on the rise, as more and more borrowers look to take advantage of the current low fixed rates on mortgages."

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