Mortgage market cools in September, says CML
A drop in mortgage lending to first-time buyers signals a dip in confidence among those intending to buy a home, according to mortgage brokers.
The number of loans approved to first-time buyers stood at 26,800 in September, the latest figures from the Council of Mortgage Lenders (CML) show.
This was a drop of 3% compared with the previous month and the second consecutive monthly fall.
However, this was still 16% higher than in September last year.
Lending to home movers also dropped compared with August.
"This reflects the market generally, suggesting a growing lack of confidence among buyers," said Jonathan Harris, director of mortgage broker Anderson Harris.
Paul Smee, director general of the CML, said: "Fears that the market is going to keep on overheating have rather gone away. The market seems in a much more stable pattern at the moment.
"I think what a lot of people are thinking about is that the next move in interest rates is going to be up, so there is perhaps a bit of caution around about people overextending themselves."
Earlier this month, mortgage lender, the Halifax, said that concern among consumers over potential interest rate rises could "curb" house buying intentions, as it reported slowing house price growth.
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