FTB lending hits 2007 peak

The number of loans advanced to first-time buyers in June stood at 23,500, 30 per cent higher than figures for June 2012. Combined with buoyant lending statistics in May and April – when a combined 75,300 loans were advanced – the new data showed the highest level of lending across three months since 2007.

First-time buyers also increased the amount they borrowed, with the average loan size rising from £112,500 in May to £117,000 in June. First-time buyers made up just under half, 46 per cent, of mortgage recipients in June, up 2 per cent from May and 8 per cent higher than the average number seen since 2007.

Paul Smee, director general of the Council of Mortgage Lenders, said: “First-time buyers have become a strong driver in the growth of mortgage lending this year proving that market conditions are favourable for them.”

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Gerry Weir, director of Edinburgh-based Cornerstone Mortgage Consultants, said: “We’ve had more activity in recent months and we’ve been securing the finance, even if it takes several attempts and knocking on a few doors. The bank of mum and dad is propping up these purchases and we still need to see more high LTV mortgages to ease the pressure to save for a big deposit.”