First Time Buyers borrowing in London dropped by 7% year-on-year

As reported by the CML (Council or Mortgage  Lenders), buyers borrowed £5.9bn in the last quarter of 2016 which was down 13% year on year.

Looking at the previous quarter, they were down 3% taking out only 18,500 loans which was 15% down on the final quarter of 2015. According to the CML report London home buyers in 2016, 75,800 loans were taken out which was down 7% compared to the year before and borrowed £24.5bn, which was a decline of 0.4% on 2015.

Paul Smee, CML director general, said: “The number of home buyers in London fell to a four year low in 2016. Home mover activity in particular continues a downward trend, with the fewest loans since 1991. Persisting supply and affordability issues appear to be exerting an ongoing restraint on growth, meaning there is some uncertainty around how the market will perform going into 2017. By contrast, remortgage activity appears to be experiencing a resurgence. Competitive mortgage rates aided by low interest rates have sparked remortgage levels not seen in the capital since 2008.”

You can read the full article published in Best Advice

Image Credit Breno Asis on Unsplash

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