According to the Council of Mortgage Lenders (CML), the number of first-time buyers has fallen to 35,600 in June 2007 compared to 39,800 in the same period last year.

Although this figure is up slightly on the 34,600 first-time buyer loans in May 2007, it is the lowest June figure since 2004 when there were 33,600 first-time buyers on the property ladder.

The number of loans to home movers also declined in June 2007 to 66,300 from 71,100 in June 2006. In addition, the first-time buyer income multiple slightly increased to 3.37 the average first-time buyer income, which is up slightly from 3.36 times in May 2007 and 3.22 times in June 2006.

In addition, the majority of first-time buyers who have got on the property ladder are opting for fixed-rate mortgages. In June, 90% of first-time buyers took out a fixed-rate deal, up from 89% in May and 83% in June 2006. But it is not just first-time buyers that are warming to fixed rates as 76% of home movers also took out fixed rate loans in June, up from 75% in May and 63% in June 2006.
According to CML, buyers are showing a stronger preference for fixed-rate mortgages to protect them against further interest rate rises during the period for which their loan is fixed and will give them confidence in their monthly mortgage payments.