You are here: Home - Mortgages - First Time Buyer - News -

First-time buyers fuel four year mortgage approval high

0
Written by:
11/02/2013
First-time buyers and high loan-to-value borrowers drove mortgage approvals to a four year high in January, according to E.surv.

Lending to borrowers with a deposit of less than 15% increased by nearly a third between December and January, while one in eight of all house purchase loans last month went to high LTV borrowers, the chartered surveyors firm found. House purchase loans as a whole increased by 17% to 65,194 – the best month since 2008.

E.surv business development director Richard Sexton said: “After an inauspicious start last autumn, Funding for Lending has come good. It has flooded lenders’ balance sheets with cheaper funds, which has encouraged them to reduce mortgage rates to record lows and roll out a much wider range of mortgages for high loan-to-value borrowers. It is helping clear the logjam in the first-time buyer market.

“The hope now is that January isn’t just a flash in the pan. There are plenty of reasons to believe it won’t be. Funding is cheaper. Borrower finances are better. And the Eurozone crisis lies dormant. All of this bodes well for the rest of the year.”

Loans to borrowers with a deposit of 15% or lower in January totalled 7,758, compared to an average of 5,325 throughout 2012. There were 14,995 loans on properties worth less than £125,000.

Since the Funding for Lending Scheme launched, lenders have introduced more than 300 new house purchase mortgages.

Ashley Law managing director Jock Cassidy said high LTV products helped those looking to acquire property: “Lenders are coming through with more attractive products in terms of the capability of borrowers to achieve the mortgage they are looking for.”

ltv-ratio-esurv

Tag Box

Debt

Pension

Spending

Financial fitness

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

Five ways to get on the property ladder without the Bank of Mum and Dad

A report suggests the Bank of Mum and Dad is running low on funds. Fortunately, there are other options for st...

The essential Your Money guide to the April 2018 tax changes

As we head into the 2018/19 tax year, a number of key changes take place to existing policies while some new i...

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

YourMoney.com Awards 2018

Now in their 21st year, our awards recognise the companies offering the best products and services to consumers

Money Tips of the Week

Read previous post:
One in three interest-only mortgages are a ‘ticking time bomb’

Over a million interest-only mortgage holders either have no investment plan to repay their mortgage, or are on plans that...

Close