Further malaise in the home loans market was reported today by the lenders' association.
The mortgage market remained subdued last month, new figures from the Council of Mortgage Lenders (CML) have revealed.
According to the analysis, 18,100 home loans worth a collective £2.3 billion were taken out by first-time buyers in June. This is eight per cent down in volume and nine percent down in value, compared to May.
In total, 29,100 mortgages were taken out across the month, worth £4.7 billion. Both of these totals are down nine percent from the previous month. Gross lending for June also went down by four percent, standing at £23.6 billion.
CML head of research, Bob Pannell commented: "Mortgage lending activity remains relatively weak and will decline further in the coming months as a result of funding constraints and lower consumer demand. The majority of lending continues to be to people with larger deposits, which is prudent for borrowers and lenders in a slowing housing market."
The new data also shows that buyers are becoming increasingly conservative, with 69 percent of all home loans taken out on a fixed rate. In May, this total stood at 66 percent.
Recent cuts by lenders to their fixed rate products are likely to lead to the mortgages becoming still more popular over months to come, the CML added.
