The Council of Mortgage Lenders has released new regional data, revealing lending trends across Scotland, Wales, Northern Ireland and Greater London.
During the third quarter, first-time buyer loans totalled 12,800 in London - up 17 per cent on the previous quarter, but down 1 per cent on the third quarter in 2014.
First-time buyers borrowed £3.4bn - up 24 per cent on the previous quarter and 4 per cent on the same quarter last year.
There were 10,800 home-mover loans in London, up nearly a third on the previous quarter and 5 per cent on the same period in 2014.
The total value of these loans was £4bn, up 38 per cent on the second quarter and 11 per cent on the third quarter last year.
Remortgage lending increased 8 per cent by volume and 10 per cent by value, compared to the second quarter.
Compared with the third quarter last year, it was up 15 per cent by volume and 25 per cent by value.
Paul Smee, director general of the CML, said the number of people buying their home in London is at levels not seen since 2007, but this is still only 60 per cent of the numbers seen at the height of the market.
He said: “Borrowers appear to be taking advantage of relatively favourable economic conditions and this could mean a continual upward trajectory moving into the new year.”
In terms of Scottish statistics, there were 8,500 first-time buyer loans north of the border - 4 per cent up on the previous quarter and 16 per cent up on the third quarter of 2014.
First-time buyers in the period borrowed £920m - up 2 per cent on the previous quarter and 16 per cent on the same period last year.
At 10,000 loans, there were 12 per cent more home-mover loans in the third quarter than the second and 15 per cent more than in the third quarter 2014.
The value of home-mover lending was £1.5bn, up 16 per cent on the second quarter and 17 per cent up on the third quarter 2014.
Remortgage lending also went up in value quarter-on-quarter and year-on-year.
Linda Docherty, CML chair for Scotland, said activity has remained robust over the past six months, with a surge in both first-time buyers and home movers.
She said: “With an economic climate of low interest rates, increased earnings and competitive mortgage offers, we would expect this to continue as we head towards the new year.”
Meanwhile, in Wales, first-time buyers took out 3,700 loans - up 16 per cent on the previous quarter and on the third quarter of 2013.
First-time buyers in the period borrowed £410m - up 21 per cent on the previous quarter and the same quarter last year.
There were 3,900 home-mover loans in the third quarter, up 8 per cent on the previous quarter and 3 per cent more than in quarter three 2014. Total value of these loans was £550m, up 12 per cent on the second quarter and 6 per cent on the third quarter 2014.
Remortgage lending in the quarter in Wales grew quarter-on-quarter and year-on-year by volume and by value.
Julie-Ann Haines, CML chair for Wales, added that affordability is better in Wales than for the UK overall. “We would expect this upward trend to continue to close out the year given the competitive mortgage deals available as a result of interest rates remaining low coupled with government schemes like Help to Buy Cymru assisting demand.”
Finally, in Northern Ireland, home-owner house purchase activity increased to 3,600 loans - up 16 per cent on the second quarter and 6 per cent on the third quarter of 2014.
First-time buyers and home movers saw similar trends to each other with both increasing quarter-on-quarter and year-on-year. The number of loans for remortgage remained the same quarter-on-quarter at 1,700 loans, but up 55 per cent in volume compared to the third quarter 2014.
Derek Wilson, CML chair for Northern Ireland, commented that remortgage activity is coming from a low base after activity declined greatly post-recession, “and is still only a fifth of the level it was at its peak in 2007, but four quarters in a row of growth is positive given how static it had been the past few years”.
Separately, the British Bankers Association’s October figures for high street banks revealed that gross mortgage borrowing was £12.9bn, 26 per cent higher than a year ago and the highest since August 2008.
The number of mortgage approvals last month was 27 per cent higher than a year ago, with remortgaging up 34 per cent and house purchase up 21 per cent.
Richard Woolhouse, chief economist at the BBA, said that consumers remain confident and their incomes are growing. “Mortgage rates are at multi-year lows and people are snapping up the very competitive deals being offered by banks.”
Mark Harris, chief executive of mortgage broker SPF Private Clients, added that while the Bank of England has issued concerns about the level of household debt, the market is far from experiencing a debt-fuelled boom.
“Mortgage approvals are rising but far from racing away while growth is more moderate and therefore more sustainable than in the past. For many borrowers, tougher affordability criteria is still a barrier to getting a mortgage or remortgaging.”
peter.walker@ft.com
