Taylor Scott International News
Home buyers in London borrowed £5.5 billion in the second quarter of 2016, down 23% compared to the previous quarter and down 3% year on year, the latest data shows. It was first time buyers who kept the market going in London, borrowing 10% more while those remortgaging borrowed less, the figures from the Council of Mortgage Lenders (CML) shows. They also increased in Scotland and Wales. Overall borrower took out 17,500 loans, down 17% on the previous quarter and 8% compared to the second quarter 2015 but first time buyers borrowed £3 billion, up 3% on the first quarter and 10% compared to the second quarter last year. This equated to 10,800 loans, up 3% quarter on quarter but down 1% year on year. Home movers borrowed £2.5 billion, down 41% on quarter one this year and 14% compared to a year ago. This equated to 6,700 loans, down 37% quarter on quarter and 18% year on year. The figures also show that remortgage activity totalled £4.3 billion, up 6% on the first quarter 2016 and 29% compared to a year ago. This came to 14,200 loans, up 5% quarter on quarter and 19% compared to a year ago. ‘First time buyers have continued to drive mortgage lending in London, with 10% more first time buyer lending in the second quarter than the first. The opposite is true for home movers, probably just reflecting a rebalancing after the very strong first quarter as many buyers sought to complete purchases before changes to stamp duty,’ said Paul Smee, director general of the CML. ‘The second quarter data largely pre-dates the European Union referendum. While it will take time to see how Brexit may affect the market, the London mortgage market clearly remains active and firmly open for business,’ he added. First time buyers were also key in Scotland, borrowing £920 million, up 42% quarter on quarter and 2% year on year, some 8,500 loans, up 39% quarter on quarter and 4% year on year. Home movers borrowed £1.2 billion, up 11% quarter on quarter but down 5% compared to a year ago. This totalled 8,100 loans, up 11% quarter on quarter but down 9% year on year. Remortgage activity totalled £850 million, up 9% both on the first quarter 2016 and the second quarter 2015. This came to 7,100 loans, up 11% quarter on quarter and 4% year on year. Carol Anderson, CML Scotland chair, pointed out that it is the 19th successive quarter of growth in first time buyers compared to a year earlier and the highest quarterly number of first time buyer loans since the middle of 2007. In Wales first time buyers borrowed £420 million, up 31% on the first quarter and 24% on the same period last year. This totalled 3,800 loans, up 31% quarter on quarter and 19% year on year. Home movers borrowed £490 million, down 6% on the first quarter of the year but unchanged compared… Taylor Scott International
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