17 Jan

Loans to first-time buyers increased in November

Loans to first-time buyers increased in November

Home loans for first-time buyers increased by three per cent in November compared to the previous month, according to the Council of Mortgage Lenders (CML).

More than 16,000 loans, worth £1.9 billion, were approved, despite strict credit criteria.

According to the report, loan-to-value ratios have become more flexible, in particular for first-time buyers.

The ratio was 80 per cent for the second month in a row for first-time buyer loans, the highest loan-to-value ratio the market has seen since November 2008.

In addition, November also saw the proportion of income needed to afford mortgage interest payments drop to a low of 10.7 per cent.

CML director general Michael Coogan said:"It is encouraging to see credit criteria becoming a little more liberal for first-time buyers."

Overall, November was a stable month for mortgage activity, with 44,000 house purchase loans advanced, worth £6.3 billion.

To help first-time buyers secure mortgages on property for sale in the UK, Halifax has recently launched a No Fees mortgage.

The two-year fixed rate mortgage designed for those trying to get onto the property ladder could save first-time buyers at least £1,986 on initial costs.ADNFCR-1222-ID-800345719-ADNFCR

Cookies We use cookies to ensure that we give you the best experience on our website. To find out more about our cookies policy, see our cookies policy here or in the footer.