First time buyers reach 5 year peak
The number of people buying their first home is at the highest level for five years, according to data from the Council of Mortgage Lenders (CML).
In total there was a rise of 17pc in the number of mortgages approved for first time buyers in February 2013 when compared to February 2012, contributing to the best start to a year since 2008.
However there was a drop of 3.2pc in those taking out a loan to move house, meaning the value of loans to movers fell by 2.8pc over the year.
Last week we reported that the total cost of applying for a mortgage for a first time buyer has risen 5pc since last summer, but this seems to be doing little to discourage those looking to get onto the property ladder. Government initiatives, such as Funding for Lending and the new Help to Buy scheme are thought to be a major reason the market for first time buyers is improving.
CML’s director general, Paul Smee said “First time buyers are continuing to take advantage of more favourable market conditions, helping to drive the underlying trend for resilient house purchase lending”
“We hope that the new initiatives announced by the Government in the 2013 Budget will further stimulate first time buyer activity, but also help those ‘second steppers’ looking to move into a new or existing home”, he added.
If you have any questions about your mortgage, or any other financial issues, please contact one of our advisors who will be happy to help.
Share this..
Related stories
Woolwich Cuts Buy To Let Mortgage Rates
In an attempt to take some of the heat off the buy to let market it has been announced that Woolwich, the mortgage division of Barclays Bank, will be reducing mortgage rates by 0.5% on both standard buy to let mortgage deals and index tracker arrangements. The move is seen as a welcome lifeline to many landlords in the UK who are under pressure at the moment.
The Woolwich move is t...
Are we on the verge of a mortgage liquidity crisis?
There are growing concerns that competition in the UK mortgage market may well have peaked in the short-term and remortgaging could become more difficult in the latter part of 2010. Slowly but surely we appear to be slipping back towards a liquidity crisis in the mortgage market which has been brought on by the debt crisis in Europe, the UK economic situation and the UK governments move to reduce...
Read MoreMortgage lending hits an eight year low
Mortgage lending in the UK hit an eight year low in January amid signs that the recovery in the UK property market may well be veering off course. This comes at a time when hopes have been high that the corner had been turned and the property market was set for a return to growth in 2010. So what is happening? While there is no doubt there was a surge in demand for property prior to the end of...
Read MoreUK government calls in mortgage lenders for a chat
The UK government today called in the U.K.'s leading mortgage lenders for a chat about how yesterday's major reduction in UK base rates could be translated into the wider market. The move is seen by many as the ultimate test of the UK mortgage industry's nerve to fight repeated calls to come to the aid of consumers.
While the major lenders of the UK have expressed an interest in pas...
Government announces stamp duty suspension
The government has unveiled new housing reforms, aimed at boosting the UK's slowing mortgage market.Among the proposals is a 12-month suspension of stamp duty for homes worth £175,000 or less.A "free" loans scheme for low-income households has also been mooted, along with a £1 billion programme to build cheap new social housing properties.The reforms come in the wake of gloomy new figures from t...
Read More