One in three FTBs at Clydesdale & Yorkshire is under 25

Thursday 26th January 2012

Clydesdale and Yorkshire Banks has revealed that 30 is the average age for those taking out one of its first-time buyer mortgages.
 
The banks remain one of the few lenders still offering 95% mortgages to first-time buyers.
 
One-third (33%) of the banks’ first-time buyers fall into the under 25 age category, with a further 32% aged between 26 and 30, and 16% in the 31 to 35 age group, with 9%  between 36 and 40 and 11% over 41.
 
There is a marked difference between the average house prices for each age range, from £104,021 for those under 25 through to £240,709 for those aged between 31 and 35.

Meanwhile, a separate study by agency chain Darlows shows that first-time buyer applicants in South Wales are younger than anywhere else.
 
The Darlows figures show that 65% of all first-time buyers applying for a mortgage in 2011 were under 29. This compares with 59% in the East Midlands, 48% in East Anglia and the South-West and 39% in London and the South-East.


*Clydesdale and Yorkshire Banks have closed their books to new commercial property lending, in a dramatic turnaround.

The sister banks had been increasing their lending, but will now work with their existing customers on the ‘downward management’ of their property books.

The decision by Clydesdale and Yorkshire, which is owned by National Australia Bank, is likely to be accompanied by a sale of parts of Clydesdale’s loan portfolio.

It is understood that National Australia Bank is considering the disposal of a £300m property portfolio, which includes residential developments.

Last year, repeated rumours suggested that National Australia Bank was trying to exit the UK market and was in talks to sell Clydesdale and Yorkshire’s entire operations to NBNK, the banking group set up by former Lloyd’s of London chairman Lord Levene.


A spokeswoman for Clydesdale said: “Although our new lending to all businesses increased by more than £7bn in the past two years, we have been clear for some time about our reduced appetite for new commercial property lending and have sensibly introduced tighter controls.

“Many commercial property businesses have elected not to extend their borrowing during the protracted economic uncertainty, but we continue to provide support for existing customers.”