Video transcriptOngoing inflation in the volume and value of house purchase loans continues to be witnessed across the UK as we move towards Q3.
New data published in the latest update of the Council of Mortgage Lenders` regulated mortgage survey has shown that a total of £9.4 billion was borrowed by home buyers across the UK in May this year.
This represents an impressive 15 per cent increase from April and an eight per cent rise in comparison to the same month last year.
At the same time, the volume of mortgage loans increased by 13 per cent and five per cent respectively to reach 53,800 in May.
First-time buyer activity continued to strengthen the market, with the total value of loans to this group standing at £4.3 billion during the month - accounting for more than half of all loans approved at approximately 27,500.
However, homeowner borrowing was a more mixed area for the market, with monthly growth from April this year of 19 per cent, but an annual decline from May 2015 of two per cent.
Meanwhile, remortgage activity was markedly positive during the month, with growth of 15 per cent in the total number of approved loans from April and a 30 per cent increase from May last year.
Responding to the widespread rise in mortgage activity, the CML director general argued that the figures highlight a sense of returning equilibrium to the house purchase market in these latest results, following the stamp duty-driven spike in activity during March and the subsequent dip in April.
He added that `for the second month running, first-time buyers borrowed more than home movers, the first time in 20 years that this has been the case. Buy-to-let continues at lower levels as expected, after the change to stamp duty.
`Brexit, and its likely effect on the market, is a question to which the answer will not immediately be forthcoming. Lenders will continue to be open for business as usual, but lending volumes may be affected by uncertain consumer sentiment.`
Only time will now tell what the impact of the UK`s decision to leave the EU will have on house purchase and remortgage activity across the country in the months ahead.
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