6% more first-time buyers in London

New CML data on the characteristics of lending in Greater London in the third quarter of 2014 show the market grew in both house purchase and remortgage activity compared to the previous quarter.

First-time buyer loans totalled 13,300 in the third quarter in London – 8% up on the previous quarter, and 6% up on Q3 2013. First-time buyers in the period borrowed £3.3 billion – up 11% on the previous quarter and 16% on Q3 2013.

There were 10,600 home-mover loans in the third quarter, up 16% on the previous quarter but 1% down on Q3 2013. Total value of these loans was £3.7 billion, up 18% on the second quarter and 10% on the third quarter 2013.

Remortgage lending in the quarter showed growth in London compared to the previous quarter but down in volume slightly compared to the third quarter last year.

Paul Smee, CML director general, commented:

“London lending is currently driven by both home-mover and first-time buyer growth so borrowers can still find homes in London at their affordability level. Despite the growth of lending to its highest level for seven years, these figures have remained pretty consistent for the past twelve months which suggests a steady market.”

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