First Time Buyer Mortgages Fall In 1st Quarter of 2016

May 25, 2016 by in category Mortgage News with 0 and 0

Council of Mortgage Lenders (CML) figures revealed that compared to the previous three months, lending to first-time buyers dropped in quarter one across the UK, with Scotland suffering the biggest decline as the value of fledgling loans fell 24%.
Scottish first-time buyers borrowed £600m in Q1, around a quarter less than final quarter of 2015.

In addition to this and compounding the situation, this decline was closely followed by first-time buyer lending in Wales which dropped by 20% quarter-on-quarter to £330m. Northern Ireland and London also saw a fall in lending to first-time buyers with declines of 16% to £160m and 7% to £2.9bn, respectively.

Lending values rose, year-on-year, with Wales seeing a 22% uplift in first-time buyer borrowing. This was followed by London, Northern Ireland and lastly Scotland with yearly increases in Q1 of 19%, 16% and 10%, respectively.

Specifically related to the first-time buyer market, loans in London increased, quarter-on-quarter, to £248,047 from £243,746, which compares to the UK average of £130,500. The slight increase in the average London first-timer mortgage was offset by a rise in the total household income of borrowers to £62,508 from £61,155, meaning income multiples remained virtually unchanged from 3.94 to 3.93.

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