First time buyers boost mortgage market

June saw the highest number of mortgages taken out by first-time buyers in 10 months, according to data released today by the Council of Mortgage Lenders.

There were 18,100 loans to first-time buyers, worth £2.2 billion, 24% higher by volume and 29% higher by value than in May. June’s first-time buyer numbers were exactly the same as in last August, but 8% lower by volume and value than in June 2010.

Home movers took out 28,600 loans, worth £4.6 billion, in June  – up from 23,800, worth £3.7 billion in May, but down from 32,800 loans, worth £5.3 billion, in June 2010.

Overall, there were 46,700 loans for house purchase, worth £6.7 billion, in June, up 22% in volume and value from May, but down 11% by volume and 13% by value on June 2010.

Remortgaging was unchanged in June, totalling 30,700 loans worth £3.8 billion. Unlike lending for house purchase, however, remortgaging was up 10% by volume and 9% by value on June 2010.

Source: Council of Mortgage Lenders