Buy to Let

FTB borrowing up 26% in June

First-time buyer (FTB) borrowing in June was up 26% on the previous month and 9% on June 2016 to £5.9bn, according to new data from UK Finance.

On a non-seasonally adjusted basis, first-time buyers borrowed £14.8bn in Q2 2017, up by 18% on the previous quarter and 10% on the same quarter last year.

The proportion of household income used to service capital and interest rates in June for first-time buyers stood at 17.3%.

Paul Smee, head of mortgages at UK Finance, said: “June’s figures show a busy month in the mortgage market, with home movers having their highest monthly activity levels for over a year and an especially high number of loans for first-time buyers.

“Buy-to-let activity remains subdued compared to its 2015 peak, but consistent month-to-month since stamp duty changes in April 2016.

“But there are also signs of a softening market and we are not anticipating that this performance will be sustained in the second half of 2017.

“A slightly lop-sided market could well show some growth in house purchase lending, but alongside reduced remortgage and buy-to-let activity.”

The typical loan size for FTBs increased from £137,000 in May to £139,000 in June.

The average household income increased to £41,000 from £40,500, with the income multiple increasing from 3.58 to 3.59.






Leave a Reply

Your email address will not be published. Required fields are marked *

20 − 8 =