Latest mortgage trends - Q3 update

Read our round-up of the latest mortgage trends for this quarter, with good news for first-time buyers and those looking for a buy-to-let property

Mortgage market updateUK gross mortgage lending has increased by 12% since September last year, according to the Council of Mortgage Lenders (CML), with good news for first-time buyers and those looking for a buy-to-let property.

The buy-to-let market is particularly strong, with a 36% increase in loans for house purchases. This is being partly driven by people's understanding that house price levels and supply problems are creating significant investment opportunities.

There are also increases in the number of first-time buyer loans, as well as the amounts borrowed. First-time buyers are taking advantage of the range of high loan-to-value (LTV) deals available, while a fall in pricing means they are also not overstretching themselves as they are paying a record low proportion of their monthly household income to cover their mortgages.

In September, the proportion of income paid by first-time buyers was 18.3% - the equal lowest monthly level (along with June 2015) since the CML began tracking this in 2005.

Lending to home movers saw a similar increase as loans to first-time buyers. Home movers spent 18.1% of their income to pay capital and interest repayments, a decrease from 18.8% in the third quarter last year.

With competitive rates and high levels of product choice currently available, alongside generally improving economic conditions, these trends are expected to continue as we head into the new year.

Whether you're a first time buyer, moving house or looking to remortgage, our mortgage advice service searches the whole of the mortgage market and over 80 leading UK lenders to find the most suitable deal for you.

If you'd like to speak to one of our advisers, you can contact our team on 0800 032 5333, Monday to Friday, 9am-5pm.

Your home may be repossessed if you do not keep up repayments on your mortgage.

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Police Mutual Assurance Society Limited (PMAS), an incorporated friendly society is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority; Police Mutual Insurance and Financial Services Limited (PMIFS), a wholly owned subsidiary of PMAS is authorised and regulated by the Financial Conduct Authority.