£3.8billion in loans to first-time buyers

Mortgage lending to first-timers was one third higher than in the same month a year ago.

Gross UK mortgage lending was an estimated Ј16.4billion in August - 28 per cent higher than August last year.

The latest figures from the Council of Mortgage Lenders show growing activity in the market.

The healthy growth in all lending areas compared to the same time last year is indicative of more confidence in the market

Paul Smee, director general of the Council of Mortgage Lenders

Some 27,100 loans worth Ј3.8billion were handed out to first-time buyers in August, a seven per cent increase on July.

First-time buyers stretched their borrowing in relation to their income, borrowing on average 3.36 times their salary in August.

Paul Smee, director general of the council, said yesterday: "The healthy growth in all lending areas compared to the same time last year is indicative of more confidence in the market." express