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| Loans to homebuyers '23% higher' | Loans to homebuyers '23% higher' |
| (30 minutes later) | |
| The number of mortgages for homebuyers granted in June rose by 23% compared with May, according to UK lenders. | |
| Some 45,000 home loans were granted for house purchases - just 6% lower than the same month the previous year, the Council of Mortgage Lenders (CML) said. | Some 45,000 home loans were granted for house purchases - just 6% lower than the same month the previous year, the Council of Mortgage Lenders (CML) said. |
| The group said the mortgage market had stabilised, although this was far from a return to the housing boom. | The group said the mortgage market had stabilised, although this was far from a return to the housing boom. |
| First-time buyers were still being squeezed, as they required an average deposit of 25% of a home's value. | First-time buyers were still being squeezed, as they required an average deposit of 25% of a home's value. |
| Low numbers | Low numbers |
| The CML figures showed that the number of loans granted in June to people buying a house was at its highest level since July last year, when the housing market was already entering the doldrums, and amounted to £5.9bn. | |
| KEY FACTS 23%: Rise in mortgages for house purchases from May to June26%: Typical deposit in June28: Average age of a first-time buyer40: Average age of a home-mover Source: CML An estate agent's story | |
| "Low interest rates and realistic selling prices have helped generate a welcome increase in transactions. But there is some way to go before we reach normal levels of activity," said CML economist Paul Samter. | "Low interest rates and realistic selling prices have helped generate a welcome increase in transactions. But there is some way to go before we reach normal levels of activity," said CML economist Paul Samter. |
| "There are tentative signs that lending criteria are easing, but remortgaging demand is likely to remain subdued whilst interest rates stay at current levels." | "There are tentative signs that lending criteria are easing, but remortgaging demand is likely to remain subdued whilst interest rates stay at current levels." |
| The average house purchase loan rose from £105,000 in March to £111,000 in June, signalling the recent increase in the typical house price. | |
| But there has been little change in the average deposit needed for these loans. This was 25% in March and 26% in June. | But there has been little change in the average deposit needed for these loans. This was 25% in March and 26% in June. |
| Getting on the ladder | |
| First-time buyers - who on average get onto the property ladder at the age of 28 - were granted 17,200 loans in June, worth £1.9bn. This was up 26% on the number given out the previous month. | |
| The figure was 7% lower than a year earlier, when the average first-time buyer put down a deposit of 13% compared with a deposit of 25% in June. | |
| "If first-time buyers are coming back to the market, the market can move," said Ashley Brown, director of mortgage broker Moneysprite. | |
| "There have clearly been some major withdrawals from the bank of Mum and Dad in recent months although when this source runs dry the number of first-time buyer loans could fall again, which will negatively impact the entire market." | |
| Home-movers had an average age of 40, the CML figures showed, consistent with the long-term average. | |
| The number of loans for remortgaging increased by 13% from May to 34,000 loans in June, with lower interest rates "dampening" the demand for remortgaging, the CML said. | |
| Fixed-rate deals were the most popular form of mortgage in the second quarter of the year, lenders said, making up 78% of new lending in June owing to greater availability. |