12 Jun

CML: First-time buyers putting down highest deposits for years

CML: First-time buyers putting down highest deposits for years

First-time buyers are putting down their highest deposits for over three years, at an average of 13 per cent in April, according to the Council of Mortgage Lenders (CML).

In a further indication of tightening lending conditions, the organisation's report revealed that they also typically took out loans for 3.3 times their income, down from 3.35 in March.

Gross lending increased by eight per cent in April to reach £26.1 billion, although this is still down by five per cent on this time last year, the CML reported. Overall, 50,700 loans were taken out for house purchase, totalling £7.7 billion.

Meanwhile, the number of borrowers opting for fixed-rate mortgages in the same month increased from 54 per cent in March to 59 per cent in April.

CML director Michael Coogan predicted: "This trend is likely to continue as the anticipation of future Bank base rate cuts has diminished."

Both Abbey and Moneyfacts have recently noted that as borrowers seek security in an unstable market, fixed-rate mortgages, particularly five-year fixes, are increasing in popularity.
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