There was a fall in the number of first-time buyers in June dropping to 35, 600, according to new stats from the Council of Mortgage Lenders.
The research also shows that the FTB income multiple hit a new record at 3.37 times the average FTB income – up slightly from 3.36 times in May, and 3.22 times in June last year.
The number of loans to FTB declined to 35,600, lower than the 39,800 loans in June last year. Although this figure is up slightly on the 34,600 FTB loans in May, it is the lowest June figure since 2004 when there were just 33,600 FTBs getting on the property ladder.
The number of loans to home movers also declined in June to 66,300, from 71,100 in the same month last year.
The proportion of income FTBs use to pay mortgage interest has also increased – from 19.1 per cent in May to 19.3 per cent in June. This is up from 16.5 per cent in June last year and is the highest figure since the fourth quarter of 1991.
The majority of FTBs able to get on to the property ladder are opting for fixed-rate mortgages. In June, 90 per cent of FTBs took out a fixed-rate deal – up from 89 per cent in May and 83 per cent in June last year. This is the highest figure on record.
According to the CML, a record 76 per cent of home movers also took out fixed-rate loan in June – up from 75 per cent in May and 63 per cent in the same month last year.