Good news for first-time buyers as lending reaches a five year high
Loans to aspiring home owners up 17% compared to 2012
April 16, 2013
First-time buyers are benefiting from a relaxation of restrictions on credit as lending increased to a five year high in Febreuary this year. According to data released by the Council for Mortgage Lenders (CML) lending to aspiring home owners was up 17.6% for February this year compared to the same month in 2012. Lending has been on the up since 2011 but is still well short of the pre-crash peak in 2007.
Julian Wadley of the CML said. “The rise in borrowing to first-time buyers is from a very low base – it’s very much baby steps, but it’s still encouraging.”
Lending to first-time buyers is expected to increase in light of the latest government scheme, Help to Buy, announced in last month’s Budget. Part of the scheme allows first-time buyers to purchase a home with just a 5% deposit.
Paul Smee, CML director-general, said he hoped Help to Buy would “further stimulate first-time buyer activity” while also freeing up so-called “second steppers” to move house.