Loans for both house purchase and remortgage fell slightly in September, according to the Council of Mortgage Lenders (CML).
Its data showed that 48,200 loans worth £7.1 billion were taken out for house purchase in September, down 2% in volume and 5% in value compared with August, but up 3% in volume and value compared with September 2010.
The decline in house purchase lending in September was driven by a drop in home mover activity. Around 30,100 loans worth £4.9 billion were advanced to home movers in September, down from 31,400 (£5.3 billion) in August.
In contrast, first-time buyer numbers rose in September. The 18,200 loans worth £2.2 billion taken out by first-time buyers represented an increase from 18,000 in August.
In addition to the increase in activity, the CML claims affordability continues to ease for first-time buyers. In September, interest on a new first-time buyer loan typically consumed 12.7% of the borrower’s income, down from 13% in August.
CML director general, Paul Smee, commented: “Although both house purchase and remortgage loans experienced a small drop in September, the overall market to-date shows a stable picture. However, the backdrop of global and domestic instability makes the future more difficult to call.
“A wider public debate is beginning to open up about how to help the housing market act as an engine of growth for our stuttering economy. The CML looks forward to helping to shape and drive this objective.”
