There were 26,800 loans to first time buyers in October, an increase of 16% on September and up 33% compared to October 2012.
These loans totalled £3.7bn in value which was an increase of 16% compared to September and a 48% increase on October last year.
The typical first-time buyer income multiple declined slightly, with first-time buyers typically borrowing 3.36 times their gross income, compared to 3.39 in September. The typical loan size for first-time buyers was £119,500 in October. This was the highest ever recorded level but, in parallel to this, the typical income of first-time buyer households rose to £36,460, which was also the highest ever recorded level.
The continued downward drift in mortgage interest rates have kept borrowers' payment burden low. First-time buyers spent 19.3% of gross income to cover capital and interest payments, slightly above the 19.2% in September and close to the lowest recorded monthly figure since 2005 of 19.1% recorded in April 2012 and April 2013.
Paul Smee, director general of the CML, commented:
“After years of a relatively flat mortgage market, 2013 has shown signs of lending turning a corner and looks set to finish the year strongly. Increased financial optimism among the public as the economy recovers seems to be driving this upward trend and it is welcome to see that first-time buyers continue lending momentum as more look to own their first home."
Jonathan Harris, director of mortgage broker Anderson Harris, says:
"First-time buyers continue to return to the market in their droves with the typical loan size the highest ever recorded. However, it is worth bearing in mind that the typical income of first-time buyer households is higher than ever, enabling income multiples to decline slightly. This may reflect the fact that the average age of the first-time buyer is also inevitably rising."
