Mortgage market returns to growth
Tuesday, 17 January 2012 10:17 AM
Mortgage lending for house purchase saw a year-on-year rise in November for only the second time in 2011.
The Council of Mortgage Lenders (CML) said its members made 47,000 loans in the month, an increase of four per cent on October and three per cent on November 2010.
The loans were worth a combined £6.9 billion, a figure that was five per cent up on both October and November last year.
First-time buyers took out 17,300 of the loans, an increase of four per cent on October and a year ago, worth a combined £2.1 billion, an increase of five per cent. They accounted for 37 per cent of total house purchase loans, the same as in October.
Home mover loans were up five per cent in volume and four per cent in value on October and by two per cent in volume and value on a year ago.
Mortgage interest payments again became more affordable, accounting for 12.2 per cent of the incomes of first-time buyers and 9.2 per cent of the incomes of home movers.
Remortgaging also rose in November, with the number of loans up six per cent on October and two per cent on a year ago.
CML director general Paul Smee said: "A rise in mortgage lending towards the end of 2011 is a welcome indicator for the industry considering confidence has been weak due to fragile economies both at home and in the Eurozone.
"We should expect a further increase in first-time buyer activity over the next few months as they push through their purchases to take advantage of the stamp duty concession before it ends in March."
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