First-time buyer lending ticks up
2018-06-06Lending to first-time buyers is the only area of the mortgage market that is thriving. A total of £5.1bn was advanced to people purchasing their first property in March -that's 2% more than in the same month last year, according to UK Finance. But lending to other sectors of the market has fallen, with loans to buy-to-let landlords buying property diving by 20% year-on-year.
There was also:
-
9.7% drop in the value of
loans for people remortgaging
- 4.7% slide in money lent to homemovers
Why is this happening?
The buy-to-let mortgage market has been subdued for some time following the introduction of a 3% stamp duty surcharge for people buying a second home and a number of tax changes that have dented landlords’ margins. The situation has created an opportunity for first-time buyers, who previously had to compete against investors for homes at the bottom of the ladder.
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