MORTGAGE lending has increased by almost 25% in a boost for the country's improving property market. More than 12,300 home loans were approved across
New house hunters accounted for a large proportion of the rise, securing 5900 new loans in the first three months of 2014 - an increase of almost one-third year-on-year. However, they borrowed almost three times their income, a higher proportion than at the end of last year, according figures released by the
"First-time buyers were a crucial driver throughout 2013, and this is appears to be continuing. Affordability for first-time buyers is better than the
Figures were down compared to the last quarter of 2013, although industry experts said a seasonal dip at the start of the year was to be expected.
"People who have got 40% deposits are getting mortgage deals of between two and two-and-a-half per cent, which is helping.
"Those who have been saving up money are starting to buy. First- time buyers were paying 6% 12 or 18 months ago and now it's 4% to 4.5%."
"I believe the amount people will be able to borrow will fall," he said. "The early indications are that lenders are offering slightly less than they did pre-mortgage market review. But it's a good time to buy - I think it will remain buoyant for the next few years."
A total of 6100 loans, worth pound(s)670m, were also agreed for remortgages, a rise of 7% on early-2013 volumes.
"With the proven success of the scheme clear, it is essential the initiative is extended to 2020 and funding is matched in order to meet this ongoing demand, particularly in light of recent
"We therefore hope that this strong upward trend continues to act as a signal of industry recovery, translating into the thousands of homes across all tenures which are required in order to meet need throughout the country."
MORTGAGE lending has increased by almost 25% in a boost for the country's improving property market.
More than 12,300 home loans were approved across