The number of mortgages advanced to first-time buyers in October was up 14 per cent year-on-year, according to figures from the Council of Mortgage Lenders (CML).
A total of 29,200 loans were advanced to borrowers taking their first steps on the housing ladder in October, up from 26,200 a year earlier. By value, lending to first-time buyers was up 22 per cent from £3.6 billion in October 2013 to £4.4billion a year later.
Buy-to-let lending also surged in the year to October 2014, increasing by 29 per cent from £2.1 billion to £2.7 billion.
A total of 19,600 buy-to-let loans were advanced in October, a 22 per cent increase from 16,100 loans a year earlier. Lenders advanced a total of 35,000 loans to people moving home in October, a 4 per cent jump from 33,600 a year earlier.
By value, £6.5 billion was advanced in October, a 10 per cent increase on the £5.9 billion advanced a year earlier. The fall in re-mortgage lending continued in October as the number of loans fell 11 per cent year-on-year from 26,600 to 23,900. In value terms, re-mortgage loans fell 5 per cent from £4.1 billion to £3.9 billion in the same period.
Meanwhile, gross mortgage lending across all buyer types was up 6 per cent year-on-year from £17.5 billion in October 2013 to £18.6 billion in October 2014. CML director-general Paul Smee said: “This has been a year of change for our industry, but the market has shown remarkable stability with house purchase and buy-to-let lending showing consistent growth throughout 2014, compared to 2013.
“Stamp duty reform was long overdue and it is welcome that the tax has now been changed.”