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Mortgage lending boosted by first-time buyers

Mortgage lending boosted by first-time buyers

Category: Mortgages

Updated: 17/01/2013
First Published: 16/01/2013

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Increased lending to people taking their first steps onto the property ladder helped to boost the overall mortgage market during November last year, according to new statistics.

A total of 52,700 home loans were lent in the eleventh month of 2012, of which 21,700 were granted to first-time buyers, reflecting an 8% monthly rise for borrowing within the sector.

Just over 40% of all house purchase loans were for first-time buyers, with loans totaling £2.7 billion.

Director-general of the Council of Mortgage Lenders (CML), which conducted the research, Paul Smee, said: "Encouraging activity in the first-time buyer sector in November contributed to an uplift in house purchase lending suggesting that the underlying trend for year-on-year increases should continue.

"We expect the Funding for Lending Scheme to continue to encourage a downward drift in interest rates. This may prompt an increase in remortgage activity as borrowers seek to take advantage of lower rates."

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