The CML monthly report for mortgages indicate 45,000 purchase loans in March with 28,000 remortgages. This is a significant month on month increase and year on year increase for house puchases.
The home purchase mortgage figures indicated a 25% growth on February 2010 and the remortgage figures up 23% with first time buyer activity being one area of substantial growth with 17300 loans being to first time buyers. Average loan to value for first time buyers represented 76% of the property price. As the number of mortgage products with higher loan to values enter the market it will be interesting to see if deposits continue to reduce over time.
Michael Coogan, director general of the CML said "Today’s figures indicate there is currently some momentum to house purchase lending, but for the sake of the future health of the housing and mortgage markets, the new government will need to focus on the critical issue of funding and how to address the issues arising from the repayment of the emergency support provided during the financial crisis. The UK is at risk of chronic under-supply of credit and rationing of mortgages for consumers – for years to come."