Mortgages  

First-time buyers up 24% year-on-year

Paul Smee, director general of the trade body, said the first time buyer sector in November boosted the whole market and suggested a trend for year on year increases in lending.

He 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.”

Mr Smee predicted the Funding for Lending scheme would push interest rates on products down, and could also provide a boost to those looking to remortgage and move home.

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According to the figures, 21,700 loans were advanced to first-time buyers in November, worth £2.7bn, representing an 8 per cent rise compared to October and up by 24 per cent on November 2011.

A total of 52,700 loans were advanced in the November, the data showed, up 13 per cent year on year.

Industry view

Ben Thompson, managing director of the Legal & General Mortgage Club, said: “These may well be the first signs of a recovery in the housing market, and we must ensure this recovery becomes permanent. When it does, this should benefit the wider economy, which in itself will introduce improved levels of buyer confidence.”

Peter Williams, executive director of the Intermediary Mortgage Lenders’ Association, said: “To see the number of loans to first-time buyers up by almost a quarter on November 2011 will help to silence the sceptical about the potential for improving access to the property ladder. Together with a 6 per cent a year increase in loans to home movers, it is a strong indication that the market is growing. We have every reason to expect this to continue.”

Adviser View
Duncan Philp, senior consultant for Fife-based MacBeth Currie, said: “We are not looking at the property side being any different to last year. We have not experienced much interest despite all the data going around. The market still seems pretty flat.”

Up

52,700 loans in November 2012

21,700 loans to ftbs