The figures from Mortgage Broker, Mortgage Direct show that over the same period, the number of buy-to-let mortgages taken out has surged from 9 per cent to 19 per cent as investors take advantage of house price inflation.
Peter Gladdy, director of Mortgage Direct, comments: After last months surge of first-time buyers we have witnessed a considerable drop to our lowest ever levels recorded this month. This fall can be partly attributed to the lack of affordable properties currently available on the market as prices continue on their upward trend.
At the same time, the number of buy-to-let mortgages has surged. Investors are able to cash in on the high demand for rental property as first-time buyers struggle to get on the housing ladder.
The survey showed that an increasing number of borrowers are opting for interest only mortgages. Last month, just 19 per cent of people took this option. This month, the figure has almost doubled to 34 per cent.
Gladdy adds: While this can be expected in respect of buy-to-let mortgages, it is extremely worrying that other borrowers continue to throw caution to the wind and are not setting up proper repayment programmes despite the warnings that are being provided.
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