The number of mortgages taken out to fund house purchases increased in June, according to figures from lenders which suggest that new rules on loans have not dampened the property market.
Data from the Council of Mortgage Lenders showed that 60,500 house purchase loans worth a total of £10bn were taken out during the month, a rise of 5% by number and 6% by value on May’s figures. Compared to June 2013, the figures were up by 15% and 23% respectively.
More than half of those loans were taken out by home movers, who accounted for 31,900 of the mortgages advanced, 4% up on May, however the number of first-time buyers showed a bigger month-on-month increase, rising by 7% to 28,600.
Despite the introduction of new affordability tests in April, which force lenders to check applicants’ outgoings as well as their income and to stress-test their borrowing to ensure they can still afford repayments if interest rates rise, the amounts borrowed by first-time buyers increased in June.
via The Guardian