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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

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

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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