First-time buyer mortgage lending up by a third, says CML
Figures from the National Association of Estate Agents show more homeowners putting their properties up for sale. Photograph: Rebekah Downes/PA
The number of mortgages advanced to first-time buyers rose by a third in the 12 months to August, data from the Council of Mortgage Lenders (CML) showed, with new entrants to the property market accounting for 44% of all house purchase loans during the month.
The figures were published as Barclays became the latest lender to confirm it was signing up to the second part of the government's Help to Buy scheme, which is designed to make more 95% mortgages available to first-time buyers and movers.
The lender joins Santander, RBS, Halifax and HSBC in confirming it will use the taxpayer-backed guarantee to make high loan-to-value (LTV) mortgages available, meaning that lenders representing more than half the mortgage market are now signed up.
The CML figures showed that even before the second part of Help to Buy went live on Tuesday, mortgage lending to first-time buyers was growing rapidly.
A total of 27,100 home loans to new entrants to the housing market were completed in August, an increase of 7% on July and a year-on-year increase of 33%.
The value of lending rose even more sharply as first-time buyers took on larger debts: at £3.8bn it represented an increase of 9% compared to July and a 46% increase on August 2012. The CML said first-time buyers typically took on loans worth 3.36 times their income in August compared to 3.31 in July and 3.25 the previous year.
In contrast, the number of loans advanced to movers rose by 7% month-on-month and just 5% year-on-year to 34,200. The value of that lending was up 9% on the previous year at £6bn.
Figures for buy-to-let lending, which the CML started publishing on a monthly basis in September, showed the number of loans dropped to 14,900 in August from 15,200 in July. However, within this the number of loans granted to landlords buying property rather than remortgaging increased to 7,900 in August from 7,600.
The director general of the CML, Paul Smee, said: "The healthy growth in all lending areas compared to the same time last year is indicative of more confidence in the market."
Figures from e.surv, part of the LSL Property Services Group, which carries out valuations for major lenders, suggest that the number of mortgages taken out to fund house purchases continued to grow in September, hitting their highest level since February 2008.
It said 68,212 loans were taken out by homebuyers, a 36% increase on September 2012. The number of high LTV borrowers, with deposits worth 15% or less of the total property value, also increased: there were 8,185 high LTV loans in September, 60% more than 12 months ago and 11% more than in August.
Richard Sexton, director of e.surv, said: "In September, more people were buying a house than at any point in the last five-and-a-half years. And the rate of recovery is increasing rapidly.
"Lenders are saying yes to more borrower applications, and are more willing to lend to borrowers with small deposits than they were last year."
He added: "Our economy is the fastest growing in Europe – and it's being driven by the recovery in the housing market. The introduction of Help to Buy 2 could floor the accelerator, and we could see unprecedently quick growth."
The increase in the number of buyers entering the market seems to have prompted more homeowners to put properties up for sale, separate figures from the National Association of Estate Agents suggest.
The NAEA said the supply of properties coming on to the market was up by nearly 10% in September and that it expected the early start to Help to Buy, which was initially expected to launch in January, to prompt more sellers to come forward.
Article courtesy of THIS SITE.
The figures were published as Barclays became the latest lender to confirm it was signing up to the second part of the government's Help to Buy scheme, which is designed to make more 95% mortgages available to first-time buyers and movers.
The lender joins Santander, RBS, Halifax and HSBC in confirming it will use the taxpayer-backed guarantee to make high loan-to-value (LTV) mortgages available, meaning that lenders representing more than half the mortgage market are now signed up.
The CML figures showed that even before the second part of Help to Buy went live on Tuesday, mortgage lending to first-time buyers was growing rapidly.
A total of 27,100 home loans to new entrants to the housing market were completed in August, an increase of 7% on July and a year-on-year increase of 33%.
The value of lending rose even more sharply as first-time buyers took on larger debts: at £3.8bn it represented an increase of 9% compared to July and a 46% increase on August 2012. The CML said first-time buyers typically took on loans worth 3.36 times their income in August compared to 3.31 in July and 3.25 the previous year.
Figures for buy-to-let lending, which the CML started publishing on a monthly basis in September, showed the number of loans dropped to 14,900 in August from 15,200 in July. However, within this the number of loans granted to landlords buying property rather than remortgaging increased to 7,900 in August from 7,600.
The director general of the CML, Paul Smee, said: "The healthy growth in all lending areas compared to the same time last year is indicative of more confidence in the market."
Figures from e.surv, part of the LSL Property Services Group, which carries out valuations for major lenders, suggest that the number of mortgages taken out to fund house purchases continued to grow in September, hitting their highest level since February 2008.
It said 68,212 loans were taken out by homebuyers, a 36% increase on September 2012. The number of high LTV borrowers, with deposits worth 15% or less of the total property value, also increased: there were 8,185 high LTV loans in September, 60% more than 12 months ago and 11% more than in August.
Richard Sexton, director of e.surv, said: "In September, more people were buying a house than at any point in the last five-and-a-half years. And the rate of recovery is increasing rapidly.
He added: "Our economy is the fastest growing in Europe – and it's being driven by the recovery in the housing market. The introduction of Help to Buy 2 could floor the accelerator, and we could see unprecedently quick growth."
The increase in the number of buyers entering the market seems to have prompted more homeowners to put properties up for sale, separate figures from the National Association of Estate Agents suggest.
The NAEA said the supply of properties coming on to the market was up by nearly 10% in September and that it expected the early start to Help to Buy, which was initially expected to launch in January, to prompt more sellers to come forward.
Article courtesy of THIS SITE.
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