According to the Council of Mortgage Lenders, first time home buyer applicants are getting more of a taste of the first rung of the property ladder in recent months.  June of this year saw the largest number of first time buyer mortgages approved in ten months.  This is encouraging news for the market, since there is such a reliance on first timers to help stimulate the housing market which desperately needs it.  More than 18,000 loans were approved to first timers in June, which was a 24% increase over the month prior.

Remortgaging went unchanged month on month in June, when a total of 30,700 loans were posted.  This however, was a 10% increase in number compared with the same time last year.

Overall, fixed rate deals continue to lead in popularity, as inconsistency within the housing market still dominates the landscape.  Consumer confidence for what will happen next remains shaky at best.  The recent riots in the streets of London did not help instill more confidence either.

The CML director general, Paul Smee, commented on the encouraging news of first timers obtaining more lending opportunities, saying: “Whilst there are clearly financial uncertainties ahead, it is encouraging to see more house buyers surfacing at the start of summer.  Recent increases in Bank of England approvals figures also show that more completions are expected in July, so the more encouraging numbers may persist for a while.”

The base rate will likely not change for several months according to several economists, making the interest rate guessing game less challenging for potential home buyers.