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First Time Buyer Affordability Hits Eight Year High
First-time buyers’ average monthly interest payments have declined to an eight-year low, according new data from the Council of Mortgage Lenders.
First-time buyers’ interest payments fell to 12.3% in October, the lowest level since January 2004 and lower than the 13.3% reported in October 2010.
Nevertheless, first-time buyers took out just 16,400 loans worth £2bn at an average loan to value of 80% in October, 10% less than the 18,200 loans worth £2.2bn recorded for September.
Overall, 44,500 mortgages worth £6.5bn were taken out in October, which is 8% down on September.
Paul Smee, director general of the CML, says: “Despite the fall in lending in October, it is possible that we will see signs of increased activity by first-time buyers in the early months of next year, as we approach the end of the government’s stamp duty concession at the end of March.
“The underlying picture of the market overall, however, is level, albeit at low levels of lending activity.”
