The number of people taking their first step on to the housing ladder set another six-year high in August, UK mortgage lenders have reported.
Some 27,100 loans worth £3.8billion were handed out to first-time buyers in August, marking a 7% increase from July, when the number of first-time buyers was already running at its highest levels since 2007.
According to the Council of Mortgage Lenders, lending to first-time buyers in August was one third higher than in the same month a year ago. First-time buyers stretched their borrowing in relation to income in August, typically getting advances of 3.36 times their salary.
It is the highest borrowing ratio for first home owners since 2007.
Low interest rates are helping to keep monthly mortgage payments relatively affordable.
The typical first-time buyer’s monthly repayment now represents 19% of their income, edging down from 20% a year ago.
The CML figures also showed that 34,200 mortgage deals worth £6billion were advanced to home movers in August, the highest number since mid-July.
Housing Minister Kris Hopkins said: “The housing market has turned a corner and people are getting the confidence to take that important first step on the property ladder, leading the numbers of first-time buyers to reach their highest level for six years.
“But we remain determined to ensure anyone who works hard and wants to become a homeowner has help.”