Mortgage lending is at its lowest level since 2002 according to new data.
There were just 42,200 house purchase loans, 15,600 of them to first-time buyers, in August according to the Council of Mortgage Lenders.
At £6bn, house purchase lending was 63% lower than in August 2007. Both the number and value of house purchase loans were the lowest since the council began collecting monthly data in January 2002. Which? has a mortgage calculator to help you find the best deals.
First-time buyers accounted for just under a third of total house purchase lending at £1.9bn. The typical advance to a first-time buyer fell to £106,754, the lowest since May 2006, reflecting both falling house prices and a further tightening in lending criteria.
First time buyer mortgages
First-time buyers typically borrowed 84% of the value of the property and 3.18 times their income, down from 90% and 3.39 in August last year.
There were 26,600 loans to home movers worth £4.1bn, down 61% in volume and 64% in value from August last year. The typical home mover advance was £126,000, the lowest since June 2006.
There were 74,000 loans for remortgage worth £10bn, down 20% in volume and 9% in value from August 2007. This is the lowest level of remortgaging volume and value since March this year.
The proportion of borrowers choosing tracker rates increased from 28% in July to 31% in August. While the majority of borrowers (58%) still opted for a fixed rate, this has declined from 64% in July.