These loans totalled £3.4bn in value 10% higher than in February and up 36% compared to March 2013.
In the first quarter as a whole, first-time buyers took out 68,800 loans, down 13% on the fourth quarter of 2013 but 34% up on quarter one 2013. The value of these loans totalled £9.6bn, down 12% compared to the previous quarter but up 48% compared to the same period last year.
The typical first-time buyer income multiple decreased slightly, with first-time buyers typically borrowing 3.41 times their gross income, compared to 3.42 in February. The typical loan size for first-time buyers was £118,750 in March, which was unchanged from February. First time buyers' typical household income fell slightly to £35,704 in March from £36,000 in February.
Low mortgage interest rates have kept borrowers' payment burden low. First-time buyers spent 19.3% of gross income on capital and interest payments, slightly more than the 19.2% in February.
Mark Harris, chief executive of mortgage broker SPF Private Clients, says:
"The lending market continues to strengthen albeit not at the frenetic pace seen at the end of last year. The combination of cheap finance and lenders with a real appetite to lend shows no signs of diminishing.
"It is too early to say what impact the MMR will have but it will ensure that affordability is not compromised as house prices continue to rise. Even if borrowers do lack prudence and want to overburden themselves with a mortgage that they will struggle to pay when interest rates rise, the new rules mean they simply can't.
"With the economic recovery continuing apace - unemployment falling, wages rising and inflation edging off further - the markets have been anticipating an early interest rate rise. However, the Bank of England has dampened speculation that interest rates will rise soon with Governor Mark Carney declaring that they will remain low 'for some time'.
"Mortgage rates remain extremely competitive, particularly fixed rates, and there is increasing choice available to first-time buyers. This, combined with Help to Buy, is responsible for the continued surge in their numbers, which is great news for the overall health of the housing market."
