Mortgage Advice Bureau comments on April’s mortgage lending (CML) and house price (ONS) data

Brian Murphy, Head of Lending at Mortgage Advice Bureau (MAB), comments:

“April’s mortgage lending data shows that first-time buyer loans have become increasingly hard to come by over the last year, as a result of tighter limits on what people can borrow compared to their income. The ONS figures also show that first time buyers have been hit by higher house price inflation than home-movers , which inevitably means fewer people will be able to access the market.”

“Despite their higher incomes and putting up larger deposits , today’s first time buyers are still having to borrow more than they were a year ago to get a foot on the ladder. Affordability is clearly getting tougher even though mortgage rates continue to reach record lows.”

“Our limited housing stock means it is unsurprising that competition in the housing market is sky high. The Government’s pledge to increase supply by 200,000 offers some hope for the future, but the underlying question is: when will consumers start seeing these housebuilding promises come to life and start benefitting from the results?”