CML figures indicate highest deposits in 3 years

13-Jun-2008

The average first-time buyer put down a deposit of 13 per cent in April - the highest level in over three years, it has emerged.

In its latest analysis, the Council of Mortgage Lenders (CML) also found that the proportion of borrowers turning to fixed-rate products reached 59 per cent in April, an increase of five per cent on the previous month.

First-time buyers typically took out loans for 3.3 times their income, down from 3.35 in March.

The CML's director general, Michael Coogan, believes the trend for fixed-rate lending is a result of borrowers seeking certainty in the absence of a base rate cut from the Bank of England.

"Monthly house purchase lending volumes continue to be lower than last year's levels, and there will be a further weakening in coming months as recent approvals data has shown," he continued.

"The squeeze on mortgage funding has led many lenders to tighten their lending criteria," he added.

According to the CML's data, there were 18,500 loans given to first-time buyers in April, up four per cent from March but 36 per cent lower than last April.

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