The share of mortgages lent to first-time buyers in the first quarter of this year reached 31.4%, the highest level since records began in 2007, the central bank said.
Martyn Smith, CEO of Black & White Bridging, said the data “paints a nuanced picture of the mortgage market’s recovery”.
He added: “On the one hand, the sharp rise in gross advances and outstanding mortgage balances signals growing confidence among borrowers and lenders alike. But dig a little deeper, and we see a market still feeling its way forward.
“The surge in lending to first-time buyers is encouraging, showing that pent-up demand is being unlocked – yet the dip in remortgaging and softening in new commitments suggests many homeowners remain cautious, likely waiting for greater rate stability.”
Smith said from a specialist lending perspective, the rise in high-LTV borrowing indicated a growing appetite for risk and a greater importance on lenders who could manage more complex cases.
Smith added that “this must be balanced against a rise in possessions, which is a warning that affordability remains under pressure for many households.”
“In short, while momentum is returning, it’s far from a straightforward bounce-back. Lenders will need to remain agile, responsive and more personalised in their approach as the market continues to rebalance,” he added.
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