By Daniel Hunter

First-time buyers took out 27,100 loans in August, up by a third on the same period of 2012 and by 7% on July.

Loans to first-time buyers totalled £3.8 billion, meaning fledgling borrowers are getting loans worth 3.36 times their income, compared to 3.31 in July, according to the Council of Mortgage Lenders .

The Help to Buy scheme is credited with generating movement among first-time buyers. The scheme is open to first-time buyers who can afford to put down a 5% deposit, and satisfy lenders that they can meet repayments.

The CML also believes that a downward trend in mortgage interest rates contributes to the rise in first-time home ownership, as mortgage repayments have remained low in relation to income.

“The healthy growth in all lending areas compared to the same time last year is indicative of more confidence in the market,” said Paul Smee, director general of the CML.

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