Mortgage lending remains strong from first time buyers

21-Jun-2007

Mortgage lending for May reached a record £30.6 billion, the Council of Mortgage Lenders (CML) has reported, with first time buyers still making their way onto the housing ladder.

The figure represents a 12 per cent increase on the April figure of £27.4 billion, and a year-on-year increase of five per cent.

Nonetheless the CML has said that this represents a fall on the typical year on year growth reported in the first four months of 2007, which stood at around 12 to 15 per cent.

"While today's lending figure is a new record for the month of May, it does indicate that the market is slowing down following the rapid and sustained growth we saw last year," commented CML director general Michael Coogan.

"House buyers should be cautious about borrowing record volumes at a time when borrowing costs for both fixed and variable rate mortgages are likely to rise further. The current squeeze on disposable incomes will continue, making affordability levels deteriorate even further," added senior economist at the Royal Institution of Chartered Surveyors (Rics) Oliver Gilmartin.

To find out more about mortgages for first time buyers, click here.

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