View more on these topics

CML: Loans to FTBs up 8% in November

The number of loans for house purchase rose 6 per cent in November, driven by increased activity in the first-time buyer sector, according to the Council of Mortgage Lenders.

The number of house purchase loans rose 6.3 per cent between October and November to reach 52,700. Of these, 21,700 were advanced to first-time buyers, representing £2.7bn and an 8 per cent rise on October’s figures.

November signalled the largest monthly total for FTBs since the end of 2009, with the exception of March 2012 when demand was driven by the stamp duty holiday. It was the second consecutive month where loans to first-time buyers accounted for 41 per cent of all house purchase loans.

CML director general Paul Smee says: “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.”

A total of 31,100 loans worth £5bn were advanced to home movers in November, representing a 5 per cent increase compared to October and up by 6 per cent on the same period in 2011.

Remortgage lending fell in November after the total advanced dropped from £3.5bn in October to £3.2bn. The total was 26 per cent lower than for the same period in 2011.

The median LTV ratio remained at 80 per cent and the percentage of income dedicated to initial interest and capital repayments was unchanged at 20 per cent.

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com