Mortgage lending fell by 14% in December as the market faced growing affordability concerns for first-time buyers, figures indicated today.
The Council of Mortgage Lenders (CML) said £28.6bn was lent by banks, building societies and specialist lenders to homebuyers during the month.
Despite the figure representing a record for December, the total fell sharply from November’s high of £33.2bn in gross lending.
In an indication that first-time buyers are finding it harder to get on to the housing ladder, income multiples also reached a new high in December. A typical first-time buyer would now expect to take out a home loan 3.31 times the size of their salary, figures showed.
First-time buyers struggle with affordability