First time buyer mortgage approvals increase
The Council of Mortgage Lenders (CML) report that gross lending figures for June this year showed a 19% increase when compared with June 2013 for first time buyers, a 7% jump from May. Approvals for people moving home are also on the up, reaching 11% higher than last year and 4% more than May.
The figures indicate a clear trend for demand in spite of looming rate rises by the Bank of England, perhaps showing that it will take more than the strict mortgage market review (MMR) changes and threat of rate rises to slow down the housing train. With house prices still on the rise it looks as though first time buyers and movers alike are still looking to get on board before values go even higher.
Richard Sexton @ e-surv, one of the country’s leading surveyors, highlighted that this might be due to low interest rates “allowing first-timers to enjoy cheaper repayments and lock into affordable fixed-rate deals”, and the fact that lenders now offer a range of low-deposit mortgages to help people onto the ladder that 18 months ago had struggled to raise the minimum 10%.
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