First time buyers see mortgage lending hit £32bn

20-Sep-2006

Breaking First Time Buyer News from FirstRungNow: Mortgage lending hit a record £32 billion last month, figures indicate.

In addition, first time home buyers are expected to see the trend continue, as the Council of Mortgage Lenders (CML) predicts sustained demand.

The August lending data from the CML indicates growth of 7.2 per cent from the £30 billion lent in July, which the organisation attributes to a "growth in mortgage approvals during the early summer, combined with increasing house prices".

Michael Coogan, the CML's director general, said: "In the coming months we expect to see a very similar picture, as demand remains strong and house prices continue to rise."

However, he predicted that house price inflation and the strength of demand from aspiring homeowners would moderate, as consumers anticipate higher interest rates.

Meanwhile, a recent survey from Alliance & Leicester shows mortgage holders are confident they can cope with last month's quarter percentage point interest rate rise.

Some 45 per cent of people believe they can afford the increase in the cost of borrowing, according to data from the bank.

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