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UK mortgage lending picks up, credit conditions seen improving

Staff Writer |
UK mortgage lending picked up in May, figures from the industry showed, while the Bank of England reported slightly higher credit availability for residential mortgages in the second quarter.

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After a slow start to the year, 31,100 mortgages were approved for home movers in May, an increase of 4.4% compared to the same month last year, data from the UK Finance trade body showed.

The £6.6bn of new lending in the month was up 4.8%. The The average homemover is 39 years old and has a gross household income of £55,000.

Banks completed 32,200 first-time buyer mortgages, up 8.1%, with the value of lending up 12.5% to £5.4bn. UK Finance said the average first-time buyer is aged 30 and has a gross household income of £42,000.

Around 36,000 remortgages were completed in May, up 7.1%, with the value up 6.8% to £6.3bn.

The buy-to-let sector continued to suffering from the recent tax changes, with the number of BTL mortgages down 9.8%.

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