First-time buyer mortgages up by a third

First-time buyers took out 6,600 more loans in April than a year ago despite monthly slowdown

Latest mortgage figures show that the number of loans to first-time buyers rose by only one per cent in April compared to March, but were 37 per cent higher than in April 2013.  By value, lending was 52 per cent higher.

The report from the Council of Mortgage Lenders also shows that the number of loans to home movers increased in April by 11 per cent compared to March and by 30 per cent compared to the same time last year.

The average loan for first-time buyers was £121,500 in April, up from £118,750 in March

"First-time buyers and home movers continue to be key drivers in the growth of the market and despite fears that MMR preparations may hinder this momentum, we have seen a continued year-on-year upward trend every month in 2014," said Paul Smee, director general of the CML.

Brian Murphy, Head of Lending at Mortgage Advice Bureau said that while the number of first-time buyers taking out mortgages has more than doubled since April of last year, the monthly growth of one per cent was a "clear sign" that the rise is slowing.

"Post-MMR the profile of mortgage applications has significantly altered. This increased focus on affordability means first-time buyers, who do not have any equity to fall back on, may need some extra support as new lending rules bed in."

Simon Crone, Vice President Mortgage Insurance Europe for Genworth agreed that the figures indicated a "visible slowdown" in the first time buyer market.

"A one per cent monthly rise in first-time buyer loans refutes the idea that activity is racing out of control," he said. "First-time buyers are clearly feeling the greatest impact of tightening affordability criteria under the Mortgage Market Review 

Stuart Law, CEO of Assetz, pointed to the figures showing a 43 per cent year-on-year increase in the buy-to-let figures.

"Investors are increasingly heading for hotspots away from London," he said, "and in particular northern cities where employment is strong, in search of higher yields are greater and long term capital appreciation."

George Spencer, chief executive officer of lettings agency Rentify, said: "With the number of buy-to-let mortgages up 49 per cent on the same month last year, the sector continues to go from strength to strength. However, the 38 per cent increase in buy-to-let remortgages shows that landlords are continuing to seek out the best deal for their investment, with many opting for fixed-rate mortgages as a defence against the rumoured interest rate rises.

"In the short term, the buy-to-let market should remain strong as it is under-pinned by a shortage of affordable homes to buy. However, it remains to be seen what long-term effects the government’s plans to make it easier to build new houses for sale, announced in last week’s Queen’s Speech, will have on the rental market."

Discover more property articles at Homes and Property
News
A model of a Neanderthal man on display at the National Museum of Prehistory in Dordogne, France
science
News
Richard Dawkins dedicated his book 'The Greatest Show on Earth' to Josh Timonen
newsThat's Richard Dawkins on babies with Down Syndrome
Arts and Entertainment
Eye of the beholder? 'Concrete lasagne' Preston bus station
architectureWhich monstrosities should be nominated for the Dead Prize?
Extras
indybest
PROMOTED VIDEO
Travel
Dinosaurs Unleashed at the Eden Project
travel
Arts and Entertainment
music
Sport
football
Life and Style
This month marks the 20th anniversary of the first online sale
techDespite a host of other online auction sites and fierce competition from Amazon, eBay is still the most popular e-commerce site in the UK
News
i100
Property search
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs General

Quantitative Analyst (Financial Services, Graduate, SQL, VBA)

£45000 per annum: Harrington Starr: Quantitative Analyst (Financial Services, ...

Application Support Engineer (C++, .NET, VB, Perl, Bash, SQL)

Negotiable: Harrington Starr: Application Support Engineer (C++, .NET, VB, Per...

C# .NET Software Developer (Client-Side, SQL, VB6, WinForms)

Negotiable: Harrington Starr: C# .NET Software Developer (Client-Side, SQL, VB...

C# Developer (Genetic Algorithms, .NET 4.5, TDD, SQL, AI)

£40000 - £60000 per annum + Benefits + Bonus: Harrington Starr: C# Developer (...

Day In a Page

Middle East crisis: We know all too much about the cruelty of Isis – but all too little about who they are

We know all too much about the cruelty of Isis – but all too little about who they are

Now Obama has seen the next US reporter to be threatened with beheading, will he blink, asks Robert Fisk
Neanderthals lived alongside humans for centuries, latest study shows

Final resting place of our Neanderthal neighbours revealed

Bones dated to 40,000 years ago show species may have died out in Belgium species co-existed
Scottish independence: The new Scots who hold fate of the UK in their hands

The new Scots who hold fate of the UK in their hands

Scotland’s immigrants are as passionate about the future of their adopted nation as anyone else
Britain's ugliest buildings: Which monstrosities should be nominated for the Dead Prize?

Blight club: Britain's ugliest buildings

Following the architect Cameron Sinclair's introduction of the Dead Prize, an award for ugly buildings, John Rentoul reflects on some of the biggest blots on the UK landscape
eBay's enduring appeal: Online auction site is still the UK's most popular e-commerce retailer

eBay's enduring appeal

The online auction site is still the UK's most popular e-commerce site
Culture Minister Ed Vaizey: ‘lack of ethnic minority and black faces on TV is weird’

'Lack of ethnic minority and black faces on TV is weird'

Culture Minister Ed Vaizey calls for immediate action to address the problem
Artist Olafur Eliasson's latest large-scale works are inspired by the paintings of JMW Turner

Magic circles: Artist Olafur Eliasson

Eliasson's works will go alongside a new exhibition of JMW Turner at Tate Britain. He tells Jay Merrick why the paintings of his hero are ripe for reinvention
Josephine Dickinson: 'A cochlear implant helped me to discover a new world of sound'

Josephine Dickinson: 'How I discovered a new world of sound'

After going deaf as a child, musician and poet Josephine Dickinson made do with a hearing aid for five decades. Then she had a cochlear implant - and everything changed
Greggs Google fail: Was the bakery's response to its logo mishap a stroke of marketing genius?

Greggs gives lesson in crisis management

After a mishap with their logo, high street staple Greggs went viral this week. But, as Simon Usborne discovers, their social media response was anything but half baked
Matthew McConaughey has been singing the praises of bumbags (shame he doesn't know how to wear one)

Matthew McConaughey sings the praises of bumbags

Shame he doesn't know how to wear one. Harriet Walker explains the dos and don'ts of fanny packs
7 best quadcopters and drones

Flying fun: 7 best quadcopters and drones

From state of the art devices with stabilised cameras to mini gadgets that can soar around the home, we take some flying objects for a spin
Joey Barton: ‘I’ve been guilty of getting a bit irate’

Joey Barton: ‘I’ve been guilty of getting a bit irate’

The midfielder returned to the Premier League after two years last weekend. The controversial character had much to discuss after his first game back
Andy Murray: I quit while I’m ahead too often

Andy Murray: I quit while I’m ahead too often

British No 1 knows his consistency as well as his fitness needs working on as he prepares for the US Open after a ‘very, very up and down’ year
Ferguson: In the heartlands of America, a descent into madness

A descent into madness in America's heartlands

David Usborne arrived in Ferguson, Missouri to be greeted by a scene more redolent of Gaza and Afghanistan
BBC’s filming of raid at Sir Cliff’s home ‘may be result of corruption’

BBC faces corruption allegation over its Sir Cliff police raid coverage

Reporter’s relationship with police under scrutiny as DG is summoned by MPs to explain extensive live broadcast of swoop on singer’s home