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Good news for first-time buyers as lending reaches a five year high

Loans to aspiring home owners up 17% compared to 2012

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.

To find out more about Help to Buy check out our free guide as well as our tips on how to get to the front of the buyers queue.

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