First-time buyer mortgages were down almost 50% in April.
According to the Council of Mortgage Lenders, the number of mortgages advanced in April was significantly down on the number advanced in March.
Recently released figures reveal that only 12,600 mortgages were approved for first time buyers in April which is a 48% drop on the number approved and advanced in March.
In terms of value, first-time property buyers borrowed a total of £1.5 billion which is down 52% when compared to this March and 12% down when compared to April 2011.
The average mortgage value also dropped by £19,000 from £117,000 in March to £98,000 in April. The amount the average first-timer borrowed was 3.12 times their income which was down on the 3.34 times income borrowed in March.
This reduction in activity was mainly for properties valued at between £125,000 and £250,000 which would have qualified for Stamp Duty exemption in March. The purchase of properties in this price bracket dropped by 70% in April as they were no longer Stamp Duty exempt.
Total mortgage lending in April fell to 36,000 loans from 51,600 loans approved in March.
Commenting on this drop in activity Paul Smee of the CML said that April’s figures show the entirely expected result of the end of the Stamp Duty holiday. He added that given current economic uncertainty a pick up in mortgage lending doesn't seems likely over the summer months.
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