Lending to first time buyers increases

According to the latest data from the Council of Mortgage Lenders the number of first-time buyers increased by 3% in February.

16,400 first time buyer loans were advanced in February, marking a 17% increase on the same time last year and the strongest start to a year since 2008.

First-time buyers accounted for 43% of all house purchase loans in February. Whilst first time buyer lending was up lending to home movers fell as did remortgage lending.

Lending to home movers fell in February for the third consecutive month. A total of 21,500 loans were advanced to borrowers who moved in February, down by 3% from February last year.

In February, £2.6 billion was advanced to borrowers remortgaging, a 28% fall from February last year.

CML, director general, Paul Smee, said: "First-time buyers are continuing to take advantage of more favourable market conditions, helping to drive the underlying trend for resilient house purchase lending.

"We hope that the new initiatives announced by the government in the 2013 Budget will further stimulate first-time buyer activity but also help those ‘second steppers’ looking to move into a new or existing home."

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