Market statistics released by the Council of Mortgage Lenders (CML) placed August’s homeownership lending 11% higher than a year ago. The volume of transactions advanced, followed a similar monthly and yearly upward trajectory. Mortgage lenders advanced 66,000 loans in August, a monthly rise of 13% and a yearly increase of 9%.
First-time buyers took out £5.1bn of homeloans in August, packaged into 31,800 mortgages. By value, this was a monthly rise of 13% while annually, first-time lending shot up by almost a quarter. Looking at volume, transaction levels reached 31,8000 up 12% month-on-month and 19% year-on-year.
The annual pace of growth in lending to existing property owners, while positive, was more subdued than those of first-time buyers.
Homemovers borrowed £7.1bn, up 15% on July but up just 3% compared to a year ago. This represented 34,200 loans, up 14% month-on-month and 2% on August 2015.
Despite the lacklustre annual growth, the number of homemover loans was the second highest monthly figure, in its category, of 2016, after March, and the highest August level since 2013.
Remortgage activity totalled £5.9bn, down 2% on July but up 41% compared to a year ago. This came to 34,900 loans, up 4% month-on-month and 40% compared to a year ago.
Paul Smee (pictured), director general of the CML, said: “House purchase activity bounced back from a dip in July, reflecting resilience in first-time buyer activity. Mortgage rates remain at or close to historic lows, and the re-pricing of mortgages following August’s base rate cut should help to underpin a continuing, strong appetite for home-ownership over the coming months.”