The total value of these loans was £3.5bn, which was up 3% on March and 52% on April last year.
First-time buyer affordability worsened fractionally, with first-time buyers typically borrowing 3.42 times their gross income, compared to 3.41 in March. The typical loan size for first-time buyers was £121,500 in April, up from £118,750 in March and represents the highest monthly average advance for first-time buyers on record. In parallel to this, the typical income of a first-time buyer household increased to £37,000, up from £35,704 in March, which was also the highest average income on record.
The relatively low level of interest rates means borrowers' payment burden remains relatively low at 19.4% of gross income being spent to cover capital and interest payments, up from 19.2% in March and 19.1% in April 2013.
Paul Smee, director general of the CML, commented:
“First-time buyers and home movers continue to be key drivers in the growth of the market and, despite fears that MMR preparations may hinder this momentum, we have seen a continued year-on-year upward trend every month in 2014. The UK picture continues to mask a disparate set of varied local conditions, but overall we expect lending levels to continue to build on the foundation of growth we have seen over the past 12 months."
