The data from the CML shows that the number of loans to first time buyers rose by 1% in April compared to March, but was 37% higher than in April 2013. By value, lending to first time buyers was up 3% on March and 52% higher than in April last year.
The number of loans to home movers increased in April by 11%, with the value up 15% compared to March. Compared with April 2013, growth was up 30% by volume and 47% in value.
Total number of loans for home owner house purchase, first time buyers and home movers, increased month on month by 6% and 11% by value on March, with year on year growth in number of loans up 33% and 47% by value. Total number of loans for remortgage in April was up 6% and 11% by value compared to March.
The data also shows that total number of buy to let loans declined slightly month on month down 1% in April but the value remained unchanged. Compared to April 2013, there was a 43% increase in number of loans and a 57% increase in overall value.
Home-owner house purchase lending in April increased month on month as lending continued to recover from the usual seasonal dip seen at the beginning of the year. In total, 53,200 loans were advanced for house purchase, up 6% compared to March, and the value of these loans totalled £8.8 billion, a rise of 11% on March.
Compared to April 2013, the number of loans increased by 33% and the value of lending by 47%. First time buyers took out 24,500 loans in April, up only slightly by 1% compared to March but 37% more than in April 2013. The total value of these loans was £3.5 billion, which was up 3% on March and 52% on April last year.
First time buyer affordability worsened fractionally, with first time buyers typically borrowing 3.42 times their gross income, compared to 3.41 in March. The typical loan size for first time buyers was £121,500 in April, up from £118,750 in March and represents the highest monthly average advance for first time buyers on record. In parallel to this, the typical income of a first time buyer household increased to £37,000, up from £35,704 in March, which was also the highest average income on record.
The relatively low level of interest rates means borrowers' payment burden remains relatively low at 19.4% of gross income being spent to cover capital and interest payments, up from 19.2% in March and 19.1% in April 2013.
The number of loans advanced to home movers for house purchase totalled 28,700 in April, up 11% compared to March and 30% compared to April 2013. Home mover loans totalled £5.3bn in value in April, which was up 15% on March and up 47% on April last year.
Home owner remortgage activity in April totalled 26,300 remortgage loans advanced in the period. Unlike house purchase loans, the number of remortgage loans did not show an increase, but remained unchanged, in April compared to April 2013. However, it was 6% higher than in March. These loans totalled £4 billion in value, an increase of 11% month on month and up 18% compared to April 2013.
Buy to let lending in April totalled £2.2 billion, representing 16,200 loans. This was virtually identical to March, but up 43% by volume and 57% by value compared to April last year. Within the overall total of buy to let loans, 8,400 were for house purchase and 7,600 for remortgage.
The total number of buy to let house purchase loans was up 3% compared to March and up 49% compared to April last year. The loans totalled £1 billion in value, up 2% month on month and up 61% on April last year.
The number of remortgage loans was 6% lower than in March, but up 38% on April last year. These loans had a total value of £1.2 billion, up 3% on March and 60% compared to April last year.
‘First time buyers and home movers continue to be key drivers in the growth of the market and, despite fears that MMR preparations may hinder this momentum, we have seen a continued year on year upward trend every month in 2014,’ said Paul Smee, director general of the CML.
‘The UK picture continues to mask a disparate set of varied local conditions, but overall we expect lending levels to continue to build on the foundation of growth we have seen over the past 12 months,’ he added.
