House purchase lending to home-buyers fell month-on-month in November totalling 55,600 loans, according to latest data from the Council of Mortgage Lenders (CML).

This was down 12% compared to October with the value of these loans totalling £9.2bn, a fall of 13%. Compared to November 2013, the number of loans decreased by 7% and the value of lending by 1%.

First-time buyer affordability changed fractionally, with first-time buyers typically borrowing 3.37 times their gross income, compared to 3.39 in October. The typical loan size for first-time buyers fell for the second consecutive time month-on-month to £124,822 in November, down from £125,800 in October. The typical gross income of a first-time buyer household changed slightly to £38,476 in November from £38,801 in October.

First-time buyers in November paid 19.3% of gross income towards covering capital and interest payments, little changed from 19.5% in October but still significantly less than the recent peak of 24.8% in December 2007.

Home movers affordability remained consistent month-on-month, with borrowers typically being advanced a mortgage loan 3.01 times their gross income in November, only a sight change compared to 3.00 in October. The typical loan size for home movers was £152,995 in November, practically unchanged from £153,000 in October. The typical gross household income of a home mover was £53,368 in November, which again was very similar to £53,515 in October.

Home movers’ payment burden remained relatively low in November at 18.4% of gross income being spent to cover monthly capital and interest payments, down from 18.5% in October, and well below the recent peak of 23.8% in December 2007.

Remortgage lending activity saw a dip month-on-month in November, with the number of remortgage loans totalling 24,000. This was 8% down on October and 16% down on November last year. The value of these loans (£3.6 billion) was down 10% on the previous month and down 14% on November last year.

There were 17,700 buy-to-let loans in November, representing lending of £2.4bn. The volume of loans decreased 10% and value of these loans was down 11% compared to October. In contrast, compared to November 2013, there was a 9% increase by volume and 14% by value.

Within the overall total of buy-to-let loans in November, 8,900 were advanced for house purchase and 8,600 for remortgage. The number of buy-to-let house purchase loans decreased by 12% compared to October but up 6% compared to November last year. This totalled £1.1bn in value, down 8% on October but up 10% on November last year.

The number of remortgage loans decreased in November, down 8% on October but up 12% compared to November last year. These loans had a total value of £1.3bn, down 7% on October but up 18% on November last year.

“The easing back of activity is not completely unexpected as there is usually a seasonal lending dip in the winter months and the major industry changes and more restrained market sentiment have inevitably caused month-to-month fluctuations over the last 12 months,” said Paul Smee, director general of the CML.

“Our forecasts are for gross lending to continue to grow over the next two years and this reflects our belief that there are more stable conditions in the market than a year ago.”

Mark Harris, chief executive of mortgage broker SPF Private Clients, added: “While the number of first-time buyers, those moving and remortgaging has fallen compared with November last year, buy-to-let goes from strength to strength. This is no real surprise with savings accounts paying pitiful rates of interest, demand from tenants for rental property strong and lenders relaxing criteria and cutting buy-to-let rates. With buy-to-let falling outside the remit of the mortgage market review, it is clear to see why lenders might be keen to attract more business in this area, seeing it as a way of boosting lending volumes.

“Of course, the resurgence of buy-to-let does have an impact on first-time buyers, with many competing for the same entry-level properties. However, with an increase in the number of high loan-to-value deals available at competitive rates, the number of first-time buyers is unlikely to fall dramatically. With the housing market taking a pause as well, and price increases, where they occur, likely to be much more moderate this year, the chance of first-time buyers being further priced out is lessened. There is a level of stability now, which is welcome.

“On the mortgage side, there are some cracking deals available, particularly on longer-term fixes as lenders attempt to ‘buy in’ new business before the election. Rates are unprecedented, with Woolwich launching a 10-year fix pegged at just 2.99% for those prepared to take a long-term view and are worried about interest rate rises. However, we still believe it unlikely that a rate rise will come this year with the economic recovery far from assured.”