CML reports optimistic first-time buyer figures
CML director predicts more “see-sawing” in mortgage figures in the wake of Olympics, with remortgages plummeting.
First-time buying boosted lending figures in June although overall lending was down due to a contraction in remortgaging, figures from the Council of Mortgage Lenders suggests.
Gross lending for June totalled £11.7bn, down 6 per cent from May’s £12.5bn and 7 per cent lower than June 2011.
However, lending to first-time buyers was at its highest point since July 2010, except for March 2012 when figures were boosted by the stamp duty concession.
Remortgage loans dropped to 23,400, down almost 25 per cent year-on-year and 21 per cent compared to May 2012. The total value of remortgage loans fell 18.4 per cent compared to both June 2011 and May 2012, sinking to £3.1bn.
Paul Smee, director general of the CML, said: “Lending figures have see-sawed in the first half of the year, and we may see more fluctuations in the coming months as the effects of the Olympics and other special events in the UK this year are reflected in our lending numbers.
“Within that broader context, first-time-buyer activity is showing some signs of resilience as we move away from the obvious effects of the stamp duty concession, a trend that it would be good to see maintained.”