New figures suggest weak period for mortgage lending

26-Oct-2006

First time buyers may be about to benefit from a more moderate housing market, as new statistics suggests that mortgage lending fell in September.

Although the data does not distinguish between first time buyers and repeat purchasers, figures released by the British Bankers Association (BBA) shows that gross mortgage lending fell by 14 per cent from the previous month to £17.9 billion.

In September there were 183,090 mortgage approvals - eight per cent lower than at the same time last year.

"Though September's net mortgage lending was below the high summer plateau, that is not necessarily a sign of the market moderating," said David Dooks, director of statistics at the BBA.

"While loans approved for remortgaging and equity withdrawal were weak by historical comparison, the numbers of loans approved for house purchase remained fairly robust," he added.

However, lending on overdrafts and personal loans rose by £0.2 billion in September.

Aspiring first time buyers worried about how their debts will affect their borrowing power should contact a good broker.

As the market for first time buyers toughens, new companies are offering new services to help first time buyers buy new properties by working with the house-builders.

The BBA is the primary trade association for the UK's banking sector.

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