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| Version 2 | Version 3 |
|---|---|
| Mortgage lending 'remains tight' for first-time buyers | Mortgage lending 'remains tight' for first-time buyers |
| (about 1 hour later) | |
| First-time buyers' share of the mortgage market fell to its lowest level for three years in July, according to new figures. | First-time buyers' share of the mortgage market fell to its lowest level for three years in July, according to new figures. |
| The proportion of new mortgages taken by first-time buyers fell to 34% of all loans granted to home buyers, the Council of Mortgage Lenders (CML) said. | The proportion of new mortgages taken by first-time buyers fell to 34% of all loans granted to home buyers, the Council of Mortgage Lenders (CML) said. |
| Although they had to put down an average deposit of 24%, low interest rates have helped affordability. | Although they had to put down an average deposit of 24%, low interest rates have helped affordability. |
| In general, lending on home loans continued to be squeezed. | In general, lending on home loans continued to be squeezed. |
| This was despite a small rise in new lending in July. | This was despite a small rise in new lending in July. |
| Seasonal | Seasonal |
| The number of mortgages advanced to house buyers increased to 56,000 in July, up 7% on the previous month, the CML said. | The number of mortgages advanced to house buyers increased to 56,000 in July, up 7% on the previous month, the CML said. |
| This was also 6% up on the same month a year ago. | This was also 6% up on the same month a year ago. |
| But the group said that although there had been a seasonal uplift, the market remained "very weak" with loan criteria having tightened. | But the group said that although there had been a seasonal uplift, the market remained "very weak" with loan criteria having tightened. |
| "Lending criteria remain tight, underpinned by caution on the part of both borrowers and lenders in the light of continuing economic uncertainty," said CML economist Paul Samter. | "Lending criteria remain tight, underpinned by caution on the part of both borrowers and lenders in the light of continuing economic uncertainty," said CML economist Paul Samter. |
| First-time buyers | First-time buyers |
| When asked about the chances of getting a mortgage at the start of 2010, many potential first-time buyers said they were having to get financial help from their parents to afford a deposit. | When asked about the chances of getting a mortgage at the start of 2010, many potential first-time buyers said they were having to get financial help from their parents to afford a deposit. |
| One wannabe buyer said he was applying for game shows in a bid to win the money for a deposit. | One wannabe buyer said he was applying for game shows in a bid to win the money for a deposit. |
| The picture has changed little for them since. | The picture has changed little for them since. |
| The average deposit of 24% in July was much the same as the average since the start of 2009. | The average deposit of 24% in July was much the same as the average since the start of 2009. |
| There was a slight dip in demands - with the average deposit at 21% in April and May this year - but later in the summer "loan criteria have now tightened a little", the CML said. | There was a slight dip in demands - with the average deposit at 21% in April and May this year - but later in the summer "loan criteria have now tightened a little", the CML said. |
| Low interest rates mean that mortgage interest payments account for a "modest" 13.2% share of average income - the lowest since early 2004, the group's figures show. | |
| But this has not translated to the proportion of new loans going to first-time buyers. | But this has not translated to the proportion of new loans going to first-time buyers. |
| Their 34% share of the mortgage market was down from 38% in June and the smallest percentage since the middle of 2007, just before the onset of the credit crunch and the international banking crisis. | Their 34% share of the mortgage market was down from 38% in June and the smallest percentage since the middle of 2007, just before the onset of the credit crunch and the international banking crisis. |