Lending to first-time buyers leaps by a quarter in just one month to levels not seen in NINE YEARS
According to This is Money: "First-time buyers were handed more loans to buy a home than at any other time since before the financial crisis, new figures suggest.
The number of loans issued leaped by 24 per cent in June when compared with the previous month, to 34,300.
A total of £5.5billion worth of loans was handed to first-time buyers, the report from the Council of Mortgage Lenders found, a rise of 17 per cent on the same month in 2015.
Meanwhile the number of existing homeowners taking out loans to move home rose by 28 per cent on the previous month, up 0.3 per cent in June on the previous year.
This means that, at 33,900, fewer loans were handed out to homemovers than first-time buyers. This is the third month in a row that loans to first-time buyers have outnumbered homemovers – a trend that has not been seen for the last 20 years.
Borrowers are benefiting from rock-bottom rates on loans, with some two-year fixed deals now available for under one per cent.
The very best rates do not tend to be available to first-time buyers as they are usually only offered to buyers with a large deposit.
However, even those without huge deposits are still seeing rates fall. For example someone with a deposit worth 15 per cent of the value of their property can get a five-year fixed mortgage for 2.45 per cent, a low rate almost unheard of just a few years ago.
Rates could fall even further, after the Bank of England cut its base rate to a rock-bottom 0.25 per cent, and indicated that it could chop the base rate yet again before the year is out.
Read more: http://www.thisismoney.co.uk/money/mortgageshome/article-3733219/Lending-time-buyers-leaps-quarter-just-one-month-says-CML.html#ixzz4H0mOZyOL