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First-time buyer lending up 42%

First-time buyer lending up 42%

Category: Mortgages

Updated: 12/07/2013
First Published: 12/07/2013

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Lending to first-time-buyers (FTBs) increased significantly in May, according to data from the Council of Mortgage Lenders (CML).

The number of mortgages approved to FTBs in May reached 25,100, 42% higher than May 2012's figure and up 29% on the previous month. This is the highest monthly figure since 2007, and a marked contrast to the low point of just 8,500 loans approved in January 2009.

Overall, the data revealed that the number of house purchase loans, at 55,900, rose 31.2% on April 2013's figure, while the number of remortgage loans, at 29,500, was 15.2% up on the previous month's figure.

Meanwhile, research by the UK's largest chartered surveyor group, e.surv, also revealed that high loan-to-value lending reached a four-and-a-half year high in June.

E.surv reported that there were 7,046 loans advanced to borrowers with a deposit of less than 15% in June, up 47% on the same month last year, and the highest level since September 2008.

"Although monthly lending is still running at far less than half its typical monthly level during the peak, there is no doubt that the mortgage market is firmly open for business. Both the borrowing appetite of first-time buyers, and the availability of attractive mortgages for them, have improved markedly since a year ago," said Paul Smee, director general of the CML.

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