Twitter Facebook RSS FEEDS

16% rise in homebuyer mortgages

Thursday, 11 June 2009 12:03 PM

New mortgages for home buyers rose 16 per cent in April.

The Council of Mortgage Lenders (CML) figures, out today, showed an up swing in the number of people buying properties, however the level of 35,600 mortgages is still 28 per cent down on a year ago.

The number of remortgage products has continued to fall, as borrowers continue to sit happily on low standard variable rates.

The number of remortgages was down 65 per cent on a year ago.

Mortgages to first-time buyers were up 11 per cent in April on the month before - but still down 28 per cent on a year ago.

The average loan-to-value level for a first-time buyers was 75 per cent - compared to 89 per cent a year ago.

Income multiples have also fallen from 3.33 to 2.96 - meaning first-time buyers looking to take advantage of falling house prices are able to borrow less and need larger deposits.

However, buying is becoming more affordable with first-time buyers committing 15 per cent of income to pay their mortgage interest, the lowest proportion since May 2004.

Ashley Brown, managing director of mortgage broker, Moneysprite, said: "First-time buyers are crucial to any property market recovery so an 11 per cent increase in first-time buyer loans is encouraging.

"Affordability is the key, and the combination of low prices, lenders easing their borrowing criteria and first-time buyers having the funds available to put down 25 per cent plus deposits, is making house purchasing the most affordable it's been for some time."

The CML data also showed a rise in the number of people opting for fixed rate mortgages - and long-term fixes.

CML head of research, Bob Pannell said: "With the interest rate cycle now at its floor, an increasing proportion of borrowers are taking out fixed rates, including for longer term periods of five ten years.

"With expectations for rates to remain low in the near future, shorter term fixed-rate deals are less appealing than attractively priced variable rate deals."

Related stories

Workless households increase in the UK.

Workless households with mortgages on the rise

The number of British households without a single person in employment has risen, figures show.

 Mews properties in London

Mortgages cost less than renting

The average monthly costs associated with a first-time buyer taking ownership of a two-bedroom flat totaled £567 in July.
Houses

Central London rents increased 16% in 2010

Residential rents in the capital rose by 2.2 per cent during the final quarter and are set to continue rising over the next year.

 Terraced grey brick houses

Signs of recovery for first-time buyer mortgages

First time buyers with smaller deposits are enjoying the first signs of recovery in the mortgage market, according to new analysis.
House prices in market towns have risen by £1,000 a month on average over the last decade, say Lloyds TSB. Image: Thinkstock

Market towns enjoy £1,000 a month house price rise

Over the last decade house prices in market towns have risen by £1,000 a month on average say Lloyds TSB.

 First-time buyers looking round a property

Barclays launches new FirstBuy tracker mortgages

Barclays has launched its lowest-ever fixed-rate mortgage and introduced two deals to support the Government’s FirstBuy scheme.
Friends viewing property

Shapps wants 'mates mortgages' for young buyers

Shapps will call on lenders to offer 'mates mortgages' to help first-time buyers take their first step onto the property ladder.

 Average deposit has risen twice as fast as house prices and almost four times as fast as incomes, says First Direct. Image: Thinkstock

Housing deposits rise tenfold in 20 years

Buyers hit as average deposit rises twice as fast as house prices and almost four times as fast as incomes, says First Direct.

Tenants in capital see 12 per cent rent increase over last year as living standards squeezed. Image: Thinkstock

London rents rise to record high

Tenants in capital see 12 per cent rent increase over last year as living standards squeezed.

 Row of houses on hill

Variable-rate mortgages 'the preferred option'

Rising interest rates on fixed-rate mortgages drive many Britons away while the static base rate keeps variable rate products affordable.

Search property

Headlines

Directory

Alaris

Alaris Logo
Alaris specialise in quality Bathrooms and Kitchens along with many other unique products for your home. The range of kitchens, kitchen worktops and bathrooms is extensive and the highest quality so you are sure to find what you want. New bathroom furniture, bathroom suites, taps, showers and cabinets are added regularly.

Bathrooms365

Bathrooms365 Logo
Bathroom365 supply all areas of your new bathroom - leading-edge designed bathroom suites, stylish bathroom taps and showers, all styles and forms of shower enclosures and a vast collection of bathroom furniture.

Beds Direct

Beds Direct Logo
Whether you've just moved into a property and need to furnish it or just fancy having something new to sleep on, Beds Direct offer you a wide array of beds to order online or via the telephone.

Fitmykitchen

Fitmykitchen Logo
Fitmykitchen are specialist suppliers of kitchen appliances, sink taps, waste bins and furniture. So whatever you want from kitchen sink taps to waste bins look no further than fitmykitchen, UK, the specialist suppliers of kitchen appliances, stainless steel sink taps, waste bins and kitchen furniture.

MyStampDuty

MyStampDuty Logo
We help people buying property all over the UK to minimise Stamp Duty Land Tax on residential and commercial property. If you are looking at purchasing a new home or business premises over £500,000, contact us today by completing the form on the right

Oak Furniture Land

Oak Furniture Land Logo
For hardwood furniture, including Solid Oak, Mango, Mahogany, Sheesham, Acacia, Ash and Birch, look no further than Oak Furniture Land.

Propertywide

Propertywide Logo
Propertywide.co.uk is Countrywide plc's dedicated property website. Created to provide online access to all our estate agency, lettings and property related services, Propertywide.co.uk has been designed with the consumer at heart.

The 21st Century Radiator Company

The 21st Century Radiator Company Logo
Welcome to 21st Century Radiator Company. We supply a stunning range of traditional reproduction high quality cast-iron radiators and cast-iron baths. All our cast-iron radiators and cast-iron baths are brand new, fully tested and guaranteed for ten years.

Rated People

Rated People Logo
Whatever type of home improvement or garden remodelling project you have, Rated People can help you to identify the right tradesmen for the job in a way that is quick, easy, convenient and, as it is based on real-life recommendations, trustworthy.

Residential Land

Residential Land Logo
If you are looking for short or long term rentals in Central London, Residential Land have a portfolio of over 1200 flats and houses in the best postcodes across the Capital.

Simply Bedrooms

Simply Bedrooms Logo
Simply Bedrooms, a part of Sleepwell Bedrooms Ltd, supplying quality beds, wardrobes, sliding door wardrobes and bedroom furniture at low prices and great service, London and Home Counties Specialists.

Door Handles UK

Door Handles UK Logo
Door Handles UK is the UK's largest online range of Door Handle accessories, Door Hinges, Locks and Latches and so much more and all at genuine internet prices. We have a wide range of Chrome, Brass and Glass Crystal Mortice door knobs in both traditional and contemporary designs, whatever your taste and budget you will find a design to suit.

Woodlands Furniture

Woodlands Furniture Logo
We are an established family business situated in rural Herefordshire specialising in beautiful handcrafted classic reproduction furniture. Our comprehensive ranges are readily available from stock.

Join our directory aboutproperty.co.uk

Twitter

Join the conversation at #aboutproperty

Directory articles

Why increasing amounts of people are opting for house shares

London is an expensive place to live, however, house shares offer you the opportunity to enjoy the hustle and bustle of the capital for a fraction of the price you would pay to live on your own, making them a cost-effective way forward.

Why sliding door wardrobes are the best choice for small spaces

When bedroom space is at a premium, you need to be creative with the furniture you invest in. In terms of the wardrobe, you may want to consider those with sliding doors, as they are the most practical in small bedrooms thanks to the doors.

The durability of mahogany furniture is ideal for the office

For office-based businesses it is vital to invest in high-quality furniture that is both practical and comfortable to use. While there are many products to choose from, the benefits on hand with items made from mahogany mean it is an option you should be certain to consider.