You are here: Home - Mortgages - Buy To Let - News -

First-time buyer lending up

0
Written by:
12/12/2012
The number of first-time buyers taking out a mortgage in October increased by 20%.

Lending to first-timers increased by almost a fifth on the previous year despite a continued demand for large deposits.

There were 20,000 loans to first-time buyers in October, worth a total of £2.5bn compared to £2.1bn in October 2011, according to data released by the Council of Mortgage Lenders (CML).

While first-time buyers accounted for 40% of house purchase loans, the average loan-to-value ratio on their mortgages remained static at 80%.

Moneysprite director Ashley Brown said the data was encouraging: “What’s interesting is that loans advanced to first time buyers have increased despite the average loan-to-value remaining static at 80%.

“The problem for first-time buyers has been how to cobble enough money together for a deposit, but these figures suggest they are finding a way to boost their deposit funds, despite having to meet higher living costs.”

Despite a slight rise in October compared to the previous month, the number of remortgages issued was 14% lower than the same time in the previous year. The shift in lending from remortgages was also evident in Tuesday’s lending figures from the Financial Services Authority.

The figures indicated a modest year-on-year growth in lending for house purchase, CML director Paul Smee suggested.

However, SPF Private Clients chief executive Mark Harris said for first-time buyers a 20% deposit could be ‘an impossible ask’ without help from parents.

“’The mortgage market is still constrained but is showing signs of easing. The Funding for Lending scheme continues to progress but it is a slow burner,” he said.

“We expect to see more lenders start reducing rates in the New Year as these funds filter through with better rates at high LTVs providing a further boost the number of first-time buyers.”

Tag Box

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.

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...

Money Tips of the Week

  • Are you married or in a relationship and still living at home with your parents? According to latest research as ma… https://t.co/SpiNzsKIi6
  • RT @TSB_News: Today we’ve launched market leading rates on the high street with our two-year fixed bond and two-year fixed rate cash ISA. R…
  • RT @TSB_News: Today we’ve launched market leading rates on the high street with our two-year fixed bond and two-year fixed rate cash ISA. R…

Read previous post:
BLOG: Gosling’s Grouse: thoughts on the Budget-lite

Budget-lite or Budget 2, either way the idea of effectively having two budgets a year has become an essential part...

Close