CML: NI sees best quarter since 2009

The data revealed an increase in lending to first-time buyers, home movers and remortgagors that has continued the upward trend in Northern Ireland over the last two quarterly periods.

A total of 2,800 loans worth £240m were advanced to home owners for house purchase in Northern Ireland in the third quarter of 2013.

This represented an increase of 22% compared to both the previous quarter and the third quarter of 2012.

A total of 1,600 loans were advanced to first-time buyers in the third quarter of 2013.

This was an increase compared to the second quarter of 14% and up 23% compared to the third quarter last year.

Loans to first-time buyers had a total value of £120m up from £110m advanced in quarter two and up 20% compared to quarter three last year.

First-time buyers borrowed, on average, £70,000 this quarter, a slight dip from £71,050 last quarter.

The amount borrowed by first-time buyers relative to their income was 2.76 times their income (compared to 2.81 times the last quarter) but this still remains much lower than the UK average of 3.36.

The majority of first-time buyers in Northern Ireland, 75% compared to the 40% UK average, bought properties valued at less than £125,000, and therefore would have avoided paying any stamp duty.

This proportion is considerably higher than the 7% of first-time buyers in Northern Ireland who were exempt from stamp duty in the third quarter of 2007 [18% overall in 2007].