First-time buyers 'drive' market
Monday 15 April 2013
More people are climbing onto the housing ladder after figures showed the best start to a year for first-time buyers since 2008.
The Council of Mortgage Lenders (CML) reported that 16,400 loans were advanced to first-time buyers in February, up on the 15,900 in January and 17% stronger than a year earlier.
They now account for 43% of all house purchase loans, the sixth consecutive month that this indicator has been at or above 40% and suggesting that market conditions continue to improve for newcomers.
In contrast, lending to home movers fell in February for the third consecutive month, with the figure of 21,500 loans down by 4% on January.
CML director general Paul Smee said: "First-time buyers are continuing to take advantage of more favourable conditions, helping to drive the underlying trend for resilient house purchase lending."
The number of mortgages on the market has increased by around one third since the Government launched its Funding for Lending scheme (FLS) last August, which gives lenders access to cheap finance in order to help borrowers.
There have also been recent signs of lenders bringing out more innovative deals, such as allowing first-time buyers to take out a mortgage with a 5% deposit provided that their parents put some cash into a savings account which is linked to the loan.
Indicators of loan affordability from the CML show that first-time buyers borrowed 3.19 times their income in February, down from 3.2 times in January, while the average loan to value ratio remained at 80%.
- 1 Scottish independence: Ireland since 1919 is a lesson for Scotland in what a Yes vote means
- 2 Thailand deaths: Pair's bloodied bodies found naked on Koh Tao beach
- 3 Lego breaks out of the toy box and heads for the gallery
- 4 Julian Assange and Edward Snowden join piracy mogul Kim Dotcom’s political campaign in New Zealand
Thailand deaths: Pair's bloodied bodies found naked on Koh Tao beach
Jihadi John': MI5 may have identified Isis militant who killed David Haines but options limited
Russia freezes Ukraine into submission: Kiev admits country doesn't have enough fuel for winter
Scottish independence: Police will be on high alert on Friday whatever the result
David Haines beheading: David Cameron says Britain will hunt down Isis 'monsters' shown in video murdering aid worker
Daniele Watts: Django Unchained actress detained by Los Angeles police after being mistaken for a prostitute
The political class is doing what Hitler couldn’t – destroying Britain
Scottish independence: Nationalist leader Jim Sillars threatens pro-union companies with 'day of reckoning' after independence
Scottish independence: Yes campaign feels the heat as Alex Salmond's NHS claims come under furious attack
£23m Birmingham cycle scheme is attacked by Tory councillor for not catering to the elderly
Salmond accused of laughing off national debt with ‘what are they going to do: invade?’ joke
£18000 Per Annum: Clearwater People Solutions Ltd: ***EXCELLENT OPPORTUNITY FO...
£24,000 per annum pro rata (21 hours per week): Belong: Work as part of a cutt...
£85 - £130 per day: Randstad Education Chester: Are you looking for work in Ed...
£3000 - £30000 per annum: Randstad Education Chelmsford: Would you like to wor...