First-time buyer activity continues to grow in June

On a non-seasonally adjusted basis, UK Finance data shows that mortgage lending in June rose: • First-time buyers borrowed £5.9bn, up 26 per cent on the previous month and nine per cent on June 2016. This equated to 36,000 loans, up 22 per cent month-on-month and six per cent year-on-year. • Home movers borrowed £7.8bn, up 26 per cent on May and 15 per cent yearon-year. This equated to 36,500 loans, up 24 per cent month-on-month and nine per cent compared to a year ago. • Home-owner remortgage activity totalled £6bn, up five per cent by value on May and seven per cent on a year ago. The number of remortgage loans totalled 34,300, up five per cent month-on-month and six per cent on a year ago. • Gross buy-to-let totalled £3bn, up three per cent on May and up three per cent compared to June 2016. These equated to 19,700 loans, up three per cent month-on-month and six per cent year-on-year. On a non-seasonally adjusted basis, UK Finance shows that mortgage lending in the second quarter also rose: • Home buyers borrowed £34.4bn, up 18 per cent on Q1 and 24 per cent on Q2 2016. This equated to 183,300 loans, up 16 per cent on Q1 and 9 per cent on Q2 2016. • Within this, first-time buyers borrowed £14.8bn, up 18 per cent on last quarter and 10 per cent on Q2 2016. They took out 91,400 loans, up 15 per cent quarter-on-quarter and six per cent year-on-year. • Home movers borrowed £19.6bn, up 19 per cent on Q1 and 21 per cent yearon-year. This equated to 92,200 loans, up 17 per cent quarter-on-quarter and 13 per cent compared to a year ago. • Home-owner remortgage activity totalled £16.9bn, down 11 per cent by value on Q1 but up one per cent on a year ago. The number of remortgage loans totalled 96,900, down 12 per cent quarter-on-quarter and one per cent on a year ago. • Gross buy-to-let totalled £8.4bn, down six per cent on Q1 but up five per cent on Q2 2016. This equated to 55,400 loans, down six per cent on the previous quarter but up five per cent year-on-year. Paul Smee, head of mortgages at UK Finance, said: ‘June's figures show a busy month in the mortgage market, with home movers having their highest monthly activity levels for over a year and an especially high number of loans for first time buyers. ‘Buy-to-let activity remains subdued compared to its 2015 peak but consistent month-to-month since stamp duty changes in April 2016. But there are also signs of a softening market.’