16 Sep

People opting to buy rather than remortgage

People opting to buy rather than remortgage

The latest figures suggest that home purchases rather than remortgages are helping to support the country's home lending market.

Data from the Council of Mortgage Lenders (CML) showed there were 30,200 first time buyers in July - three per cent higher than in June.

In terms of value, this means a total of £4.6 billion was lent to first time buyers - up ten per cent compared to the previous month and 39 per cent more than at the same point last year.

Those opting to move house also helped increase lending levels with the number of loans to movers rising by 15 per cent to 37,500. By value, this was a 31 per cent increase compared to July 2013 to reach £7.2 billion.

The CML figures showed a nine per cent increase in buy-to-let lending to reach £2.4 billion - a 26 per cent rise in value from £1.9 billion in July last year.

"The market has shown steady growth in house purchase and buy to let over the past few months with general improvements in economic factors across the UK allowing for more people to enter the property market," said Paul Smee, director general of the CML.

"There have been many factors over the past year that could have caused disruption but the market has remained resilient and lenders have shown themselves adaptable to all this change. The CML will continue working towards making sure future initiatives affecting the market, such as the European Mortgage Credit Directive, are introduced with equally minimal disturbance to borrowers and lenders," he added.

Research from Ocean Finance has concluded that finding the right home is actually the most stressful part of the buying process.

The study discovered many Brits feel moving day is more stressful than finding a suitable mortgage or negotiating on price, while one in three people feel the process is more stressful than the end of a relationship.

"Buying a house can be incredibly stressful as there's so much involved but it's still surprising to find that some people rate it as more stressful than breaking up with a partner," said Ian Williams, spokesman for Ocean Finance.

He added that finding a dream home is worth it for many and owning a property can more than make up for the stress.ADNFCR-1222-ID-801748901-ADNFCR

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