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| Number of first-time buyers taking on mortgages jumps 20% | Number of first-time buyers taking on mortgages jumps 20% |
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| Amid signs that banks and building societies are becoming increasingly willing to offer larger loans, the number of first-time buyers taking on mortgages leapt by 20% in March, the Council of Mortgage Lenders has said. | Amid signs that banks and building societies are becoming increasingly willing to offer larger loans, the number of first-time buyers taking on mortgages leapt by 20% in March, the Council of Mortgage Lenders has said. |
| A total of 19,100 home loans worth £2.4bn were advanced to new buyers during the month, up from 15,900 in February. First-time buyers accounted for 45% of house purchase loans in March, up from 43% in February. | A total of 19,100 home loans worth £2.4bn were advanced to new buyers during the month, up from 15,900 in February. First-time buyers accounted for 45% of house purchase loans in March, up from 43% in February. |
| The number was down 21% on March 2012, but that month marked the end of a stamp duty holiday on properties costing up to £250,000, which led to a flurry of activity as buyers sought to avoid the tax. | The number was down 21% on March 2012, but that month marked the end of a stamp duty holiday on properties costing up to £250,000, which led to a flurry of activity as buyers sought to avoid the tax. |
| Despite that catalyst for purchases, the CML said first-time buyer activity had been almost as great in the first quarter of 2013, with 50,900 mortgages advanced, compared to 51,200 in the first three months of 2012. | Despite that catalyst for purchases, the CML said first-time buyer activity had been almost as great in the first quarter of 2013, with 50,900 mortgages advanced, compared to 51,200 in the first three months of 2012. |
| While the average loan-to-value for first-time buyers remained at 80%, the CML said there had been a gradual increase in the proportion of new borrowers taking on larger loans. | While the average loan-to-value for first-time buyers remained at 80%, the CML said there had been a gradual increase in the proportion of new borrowers taking on larger loans. |
| While in the first quarter of 2012 one in five buyers put down a deposit of 10% or less of the property's value, the figure had increased to one in four in the same period of this year. | While in the first quarter of 2012 one in five buyers put down a deposit of 10% or less of the property's value, the figure had increased to one in four in the same period of this year. |
| Recent weeks have seen a flurry of mortgage rate cuts by lenders, including on higher loan-to-value deals, and the figures suggest first-time buyers are being tempted into the market. | Recent weeks have seen a flurry of mortgage rate cuts by lenders, including on higher loan-to-value deals, and the figures suggest first-time buyers are being tempted into the market. |
| Since March, there has also been the introduction of the government's new Help to Buy scheme to assist those with small deposits that went live in early April, and the extension of the Funding for Lending scheme, designed to offer cheap funds to lenders. | Since March, there has also been the introduction of the government's new Help to Buy scheme to assist those with small deposits that went live in early April, and the extension of the Funding for Lending scheme, designed to offer cheap funds to lenders. |
| Data from surveyors suggests that these schemes are leading to an increased demand for property, which could filter through to increased lending in the coming months. | Data from surveyors suggests that these schemes are leading to an increased demand for property, which could filter through to increased lending in the coming months. |
| The CML's director general, Paul Smee, said the fact that the quarterly figures almost matched those recorded in 2012 "suggests that the market continues to be favourable for those looking to buy their first home". | The CML's director general, Paul Smee, said the fact that the quarterly figures almost matched those recorded in 2012 "suggests that the market continues to be favourable for those looking to buy their first home". |
| He added: "More borrowers are taking out higher loan-to-value mortgages than any other time in the last four years – a sign that lenders are open for business, and that borrowers, even those without a large deposit, are increasingly able to get a foot on the property ladder." | He added: "More borrowers are taking out higher loan-to-value mortgages than any other time in the last four years – a sign that lenders are open for business, and that borrowers, even those without a large deposit, are increasingly able to get a foot on the property ladder." |
| The number of home movers also increased in March, and was up 11% on February's figure at 22,900. However, on a quarterly basis the number of movers has been falling – 65,300 loans were advanced in the first three months of 2013, down from 86,000 in the fourth quarter of 2012 and 71,600 in the first quarter of 2012. | The number of home movers also increased in March, and was up 11% on February's figure at 22,900. However, on a quarterly basis the number of movers has been falling – 65,300 loans were advanced in the first three months of 2013, down from 86,000 in the fourth quarter of 2012 and 71,600 in the first quarter of 2012. |
| Across the board the number of mortgages advanced for house purchases was down by 19.2% year-on-year, at 42,000. | Across the board the number of mortgages advanced for house purchases was down by 19.2% year-on-year, at 42,000. |
| Richard Sexton, director of chartered surveyors e.surv, said the CML's figures were "the most encouraging signs yet of a genuine recovery in the housing market". | Richard Sexton, director of chartered surveyors e.surv, said the CML's figures were "the most encouraging signs yet of a genuine recovery in the housing market". |
| He added: "Lenders are coming out of their shells and supporting first-time buyers, as they become more confident about their credit supplies and the state of their balance sheets. | He added: "Lenders are coming out of their shells and supporting first-time buyers, as they become more confident about their credit supplies and the state of their balance sheets. |
| "Many more high LTV borrowers are now able to get a look in thanks to rock bottom rates, easing criteria, and a much wider choice of mortgages." | "Many more high LTV borrowers are now able to get a look in thanks to rock bottom rates, easing criteria, and a much wider choice of mortgages." |
| Top mortgages | Top mortgages |
| Chelsea Building Society | Chelsea Building Society |
| Yorkshire BS | Yorkshire BS |
| Yorkshire BS | |
| Provided by London & Country for the Guardian | Provided by London & Country for the Guardian |