Homeowners in Wales borrowed £850m for house purchase during the first three months of 2016, down 16% quarter-on-quarter but up 29% year-on-year, the Council of Mortgage Lenders (CML) has reported.

They took out 6,600 loans, down 16% on the previous quarter but up 25% on quarter one 2015.

First-time buyers borrowed £330m, down 20% on the fourth quarter 2015 but up 22% on the same period last year. This totalled 3,000 loans, down 19% quarter-on-quarter but up 20% year-on-year. The average age of a first-time buyer is now 29 years old.
Home movers borrowed £530m, down 12% on the fourth quarter 2015 but up 36% compared to a year ago. This totalled 3,600 loans, down 14% quarter-on-quarter but up 29% year-on-year.

Remortgage activity totalled £420m, down 2% quarter four but up 20% compared to a year ago. This came to 3,700 loans, down 3% quarter-on-quarter but up 12% year-on-year

Julie Ann Haines, CML Cymru chair, said: “The first quarter of the year typically sees a seasonal lending dip, but the year-on-year growth in activity in all lending types is encouraging. That this is the best first quarter performance for all lending types in Wales since 2007 suggests a growth period for the market.

“With affordability improving this quarter, supported by a generally favourable economic backdrop, we would expect further growth in lending as we go into the summer months.”