20% rise in mortgage lending in February and an 18% rise in first time buyers

Posted: 17/04/2012

According to the CML, Council of Mortgage Lenders, there was a 20% rise in the number of mortgages being taken out February 2012 compared to February 2011. The report suggests this could be due to the Stamp Duty Holiday, which allowed first time buyers to purchase a property under £250,000 without paying Stamp Duty.

£5.4billion was the total lent for house purchases in February which is a 2% increase compared to January 2011 and 14,100 mortgages were taken out by first time buyers totalling to £1.7billion. This equates up to an 8% rise of first time buyers compared to January 2012 and an 18% rise compared to February 2011.

Estate agents reported an increased in interest from first time buyers as they wanted to make the most of the Stamp Duty holiday before it ended in March, after being available for a year.

Paul Smee, the CML director general spoke to the Guardian and said; ‘It is encouraging to see the continuing year-on-year improvement in house purchase lending.’

Halifax recently released information about their mortgages for buyers who wish to purchase a property through the Government's NewBuy scheme. The NewBuy scheme offers lenders 95% mortgages on new-build properties and the deals are also available through a number of house builders.

What are your thoughts on the figures released by the CML? Do you believe the Governments NewBuy scheme will be a helpful lift for first time buyers so they can finally climb onto the property ladder?

Amanda McGovern, Pali Ltd
www.paliltd.com

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