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Lending to first-time buyers climbs 4%
11/11/10
Edited by Tom Bardsley.The number of mortgages going to first-time buyers rose by four per cent in September compared with the previous month, according to new figures.
Statistics from the Council of Mortgage Lenders (CML) show the total value of these deals was £2.2 billion, unchanged from August.
It said the rise in loans going to people on the initial rung of the residential property ladder was offset by a decline in borrowing among owner-occupiers moving to new dwellings.
The volume of loans to this group was down two per cent from August at 31,600, while the total value of deals was also two per cent lower at £5.2 million.
As a result, the CML said the overall mortgage market was flat during September.
Michael Coogan, the organisation's director-general, commented: "With both consumer demand falling and funding capacity limited, neither supply nor demand look likely to feed through to any significant improvement in lending volumes as we head into winter."
According to the latest figures from the Department for Communities and Local Government, first-time buyers paid an average of £156,899 for a home in August, while owner-occupiers typically shelled out £247,772.
