In February the number of first time buyers rose by 3% in February, making the best start to the year since 2008, according to new research released by the Council of Mortgage Lenders.
Activity from first time buyers was 17% stronger in February 2013 than in February of last year, and merged with January reached the largest number of first time buyers in the first two months of this year since 2008.
Lending to home movers dropped, contributing to an overall decline in house buying lending, while remortgage lending also calmed.
A sum of 16,400 loans were given to first-time buyers in February, up on 15,900 in January and 14,000 at the same time last year. By value, loans to first time buyers came to £2 billion, the same total as the previous month, yet 18% higher than February 2012 (£1.7 billion).
First-time buyers made up 43% of all house purchase loans in February. This was the sixth successive month that this indicator has been at or above 40%, indicating that market conditions are continuing to get better for first time buyers.
Signs of loan affordability also demonstrates that the market was somewhat more favourable for first time buyers generally borrowed a smaller amount in February than in January, both in absolute terms and relative to their income. First time buyers generally borrowed 3.19 times their income in February, down from 3.2 times in January, while the average loan to value ratio remained at 80%.
This is likely to be connected with a shift towards the purchase of less expensive properties by first time buyers, with a small rise in the amount of properties bought for less than £125,000.
In February lending to home movers fell for the third successive month. A total of 21,500 loans were given to borrowers who moved in February, down by 4% in comparison with January and a decline of 3% on February last year.
For more information please feel free to contact us at:
http://www.anthonyco.co.uk
No comments:
Post a Comment