Borrowing by first time buyers hits record high

Borrowing by first time buyers hits record high

First-time buyers borrowed £5.1 billion from mortgage companies in December, far above the same month in 2015, and the highest December figure since the CML's records began in 1974.

There were some 32,000 first time buyer loans, up seven per cent month-on-month and up eight per cent year-on-year.

There were more mixed results in other demographic sectors, however. 

Existing home owners seeking to move up the ladder borrowed £6.5 billion in December, some three per cent up on the previous month but a similar amount down on the December 2015 total.

Home-owner remortgaging was down a hefty 21 per cent by volume and value in December compared to November.

"2016 could have been a potentially destabilising year of regulatory and political change, but the mortgage market has been resilient and adaptable. Home-owner house purchase lending increased, though the buy-to-let sector's positive lending performance has been driven primarily by remortgaging," according to Paul Smee, the CML's director general.

"We don't expect the market volumes to show a year-on-year increase in 2017 but instead remain similar to that achieved in 2016," he cautions.

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