Good news for housing market as first time buyer numbers surge
Number of mortgages lent to first time buyers jumps by 8%
January 16, 2013
November 2012 saw the largest increase in mortgages advanced to first time buyers since the end of 2009 (excluding the end of the stamp duty holiday in March last year). 21,700 first time buyer households were given loans in November out of a total of 52,700. The figures, from the Council of Mortgage Lenders (CML) showed that first time buyers increased by 24% compared to the previous November. However, remortgages were down by 9.7% from October despite record low interest rates on offer.
The improvement for first time buyers is generally attributed to the Bank of England’s Funding for Lending scheme. This allows banks to borrow up to £60 billion at low rates on the condition that the money is lent to British consumers and businesses.
Paula Smee, director-general of the CML said: “Encouraging activity in the first-time buyer sector in November contributed to an uplift in house purchase lending, suggesting that the underlying trend for year-on-year increases should continue.”