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28/08/2013
First-Time Buyer Loans Increase By 36%
The number of loans to first-time buyers in Northern Ireland increased by 36% in the second quarter of 2013 compared to the same period last year, data released today by the Council of Mortgage Lenders (CML) show.
This uptake resulted in the largest number of loans advanced to first-time buyers in a single quarter since the end of 2009.
The number of loans for house purchases advanced in Northern Ireland increased by 20% in the second quarter of 2013 compared to both quarter one and the second quarter last year. This represents the first year-on-year increase in house purchase lending in Northern Ireland since the start of 2012.
A total of 1,500 loans were advanced to first-time buyers in the second quarter of 2013. The number was up 25% from the first quarter this year and up 36% compared to second quarter last year.
Loans to first-time buyers had a total value of £110m which again represented an increase on the £90m advanced in quarter one and the £80m in quarter two last year.
First-time buyers borrowed, on average, £71,000 this quarter compared to £66,250 last quarter. The amount borrowed by first-time buyers relative to their income was virtually unchanged at 2.81 times their income (compared to 2.79 times the last quarter) but this still remains much lower than the UK average of 3.30. This parallels with the small uptick in the average loan to value ratio increasing to 81% in the second quarter compared to 80% the previous quarter, something seen in the UK overall.
Despite the increase in lending, home movers in Northern Ireland still only accounted for 42% of the house purchase market in quarter two which is lower than the 55% UK average.
A total of 2,400 loans worth £210m were advanced to borrowers for house purchase in Northern Ireland in the second quarter of 2013. This represented an increase of 20% compared to both the previous quarter and the second quarter of 2012. This is the first year-on-year increase since the start of 2012.
Brian McCormick, Chair of the CML in Northern Ireland, commented: "The overall increase in lending is most welcome, and first-time buyers seem to be a key driver in this growth.
"House prices in Northern Ireland are starting to stabilise and in the second quarter we did not see a year-on-year fall which is a very positive sign, alongside lending increases, for the future."
(CD/MH)
This uptake resulted in the largest number of loans advanced to first-time buyers in a single quarter since the end of 2009.
The number of loans for house purchases advanced in Northern Ireland increased by 20% in the second quarter of 2013 compared to both quarter one and the second quarter last year. This represents the first year-on-year increase in house purchase lending in Northern Ireland since the start of 2012.
A total of 1,500 loans were advanced to first-time buyers in the second quarter of 2013. The number was up 25% from the first quarter this year and up 36% compared to second quarter last year.
Loans to first-time buyers had a total value of £110m which again represented an increase on the £90m advanced in quarter one and the £80m in quarter two last year.
First-time buyers borrowed, on average, £71,000 this quarter compared to £66,250 last quarter. The amount borrowed by first-time buyers relative to their income was virtually unchanged at 2.81 times their income (compared to 2.79 times the last quarter) but this still remains much lower than the UK average of 3.30. This parallels with the small uptick in the average loan to value ratio increasing to 81% in the second quarter compared to 80% the previous quarter, something seen in the UK overall.
Despite the increase in lending, home movers in Northern Ireland still only accounted for 42% of the house purchase market in quarter two which is lower than the 55% UK average.
A total of 2,400 loans worth £210m were advanced to borrowers for house purchase in Northern Ireland in the second quarter of 2013. This represented an increase of 20% compared to both the previous quarter and the second quarter of 2012. This is the first year-on-year increase since the start of 2012.
Brian McCormick, Chair of the CML in Northern Ireland, commented: "The overall increase in lending is most welcome, and first-time buyers seem to be a key driver in this growth.
"House prices in Northern Ireland are starting to stabilise and in the second quarter we did not see a year-on-year fall which is a very positive sign, alongside lending increases, for the future."
(CD/MH)
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