Rise In Mortgage Lending

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Mortgage lending increased 12 per cent in July up to £16.7 billion, up from £14.9 billion in June. This is a 29 per cent increase since July – this from the latest figures released by the Council of Mortgage Lenders.

The growth was largely as a result of an increase in first-time buyers onto the market. In July this year, 25,300 loans were given to first time buyers, totalling at £3.5 billion (this was a 6 per cent increase since June and 46 per cent since July last year). The average size of first-time buyer loans stayed almost exactly the same at £117,038.
Despite the rise in property prices across the country, this is not affecting the affordability of these properties which in fact slightly improved. It’s clear that despite this price increase, with loan sizes remaining the same and income multiples dropping, the vast majority of people entering the property market are not borrowing beyond their means.
In addition to the increase in first-time buyer loans, buy-to-let lending rose 12 per cent in July compared to June. This spike shows that new investors are taking steps to create property portfolios through taking advantage of buy-to-let lending.
These figures are all positive signs.

This post was written by:

Steven Herd

Steven's extensive 30 years of estate agency experience in London culminated in launching MyLondonHome, which has enabled him to bring together a hand-picked team to provide the high level of quality advice, market strength and service he is renowned for.

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