Loans to first time buyers up 24%

Nearly 16,000 loans were made to
first-time buyers in January compared to last year

A total of 15,900 loans - worth £2 billion - were advanced to
first-time buyers in January 2013, compared to January 2012
(12,800 loans), according to new figures from the Council of Mortgage Lenders.

Altough it was the largest January total since January 2008 (17,700 loans), it represents an 18 per cent fall from December 2012..

For the third consecutive month, first-time buyer activity accounted for 42 per cent of all house purchase loans. There was also a minor movement towards cheaper properties among first-time buyers with a small increase in the proportion of properties bought for less than £125,000.

Overall, house purchase lending recorded its highest January total since 2008, increasing by 11 per cent compared to January last year.

Commenting on the data, CML director general Paul Smee said: "Seasonal factors clearly had an impact on lending figures in January, but it still remains the best start to a year since 2008. Mortgage finance is available and lenders are open for business, allowing more borrowers to take the step into homeownership or move house in line with their needs."

Richard Sexton, director of e.surv chartered surveyors, commented: “Life is becoming easier for first-time buyers. Although deposit requirements are still high, rates are lower and banks are more willing to lend to lower income borrowers."

Mark Harris, chief executive of mortgage broker SPF Private Clients, added: "January is never the busiest month of the year for the housing market as it tends to get off to a slow start after Christmas and the New Year but the numbers look particularly good when compared with previous Januarys, suggesting recovery is underway.

"Encouragingly, there are more first-time buyers around helping boost these numbers, which is crucial to the health of the housing market. They are still putting down a 20 per cent deposit, on average, and with the Funding for Lending Scheme making more deals available at 90 per cent loan-to-value, this should further increase the number of first-time buyers able to get on the housing ladder in coming months."

Discover more property articles at Homes and Property
Property search
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
SPONSORED FEATURES
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs General

Recruitment Genius: Systems and Network Support Analyst

£26000 - £32000 per annum: Recruitment Genius: Our client is a rapidly expandi...

Recruitment Genius: IT Systems Support Analyst

£20000 - £26000 per annum: Recruitment Genius: Our client is a rapidly expandi...

Recruitment Genius: Business Travel Consultant

£20000 - £26000 per annum: Recruitment Genius: With offices in London, Manches...

Recruitment Genius: Stock Broker / Trainee Broker / Closer - OTE £250,000

£30000 - £250000 per annum: Recruitment Genius: Stock Broker/ Trainee FX, Stoc...

Day In a Page

Migrant crisis: UN official Philippe Douste-Blazy reveals the harrowing sights he encountered among refugees arriving on Lampedusa

‘Can we really just turn away?’

Dead bodies, men drowning, women miscarrying – a senior UN figure on the horrors he has witnessed among migrants arriving on Lampedusa, and urges politicians not to underestimate our caring nature
Nine of Syria and Iraq's 10 world heritage sites are in danger as Isis ravages centuries of history

Nine of Syria and Iraq's 10 world heritage sites are in danger...

... and not just because of Isis vandalism
Girl on a Plane: An exclusive extract of the novelisation inspired by the 1970 Palestinian fighters hijack

Girl on a Plane

An exclusive extract of the novelisation inspired by the 1970 Palestinian fighters hijack
Why Frederick Forsyth's spying days could spell disaster for today's journalists

Why Frederick Forsyth's spying days could spell disaster for today's journalists

The author of 'The Day of the Jackal' has revealed he spied for MI6 while a foreign correspondent
Markus Persson: If being that rich is so bad, why not just give it all away?

That's a bit rich

The billionaire inventor of computer game Minecraft says he is bored, lonely and isolated by his vast wealth. If it’s that bad, says Simon Kelner, why not just give it all away?
Euro 2016: Chris Coleman on course to end half a century of hurt for Wales

Coleman on course to end half a century of hurt for Wales

Wales last qualified for major tournament in 1958 but after several near misses the current crop can book place at Euro 2016 and end all the indifference
Rugby World Cup 2015: The tournament's forgotten XV

Forgotten XV of the rugby World Cup

Now the squads are out, Chris Hewett picks a side of stars who missed the cut
A groundbreaking study of 'Britain's Atlantis' long buried at the bottom of the North Sea could revolutionise how we see our prehistoric past

Britain's Atlantis

Scientific study beneath North Sea could revolutionise how we see the past
The Queen has 'done and said nothing that anybody will remember,' says Starkey

The Queen has 'done and said nothing that anybody will remember'

David Starkey's assessment
Oliver Sacks said his life has been 'an enormous privilege and adventure'

'An enormous privilege and adventure'

Oliver Sacks writing about his life
'Gibraltar is British, and it is going to stay British forever'

'Gibraltar is British, and it is going to stay British forever'

The Rock's Chief Minister hits back at Spanish government's 'lies'
Britain is still addicted to 'dirty coal'

Britain still addicted to 'dirty' coal

Biggest energy suppliers are more dependent on fossil fuel than a decade ago
Orthorexia nervosa: How becoming obsessed with healthy eating can lead to malnutrition

Orthorexia nervosa

How becoming obsessed with healthy eating can lead to malnutrition
Lady Chatterley is not obscene, says TV director

Lady Chatterley’s Lover

Director Jed Mercurio on why DH Lawrence's novel 'is not an obscene story'
Farmers in tropical forests are training ants to kill off bigger pests

Set a pest to catch a pest

Farmers in tropical forests are training ants to kill off bigger pests