Mortgage activity in the UK is being driven by first-time buyers (FTBs), new research has shown.
According to figures from the Council of Mortgage Lenders (CML), movement in this sector coupled with increased home mover action resulted in a six per cent escalation in the number of loans for house purchase in November 2012.
It was shown that the total number of deals signed by FTBs in the four-week period was the largest monthly total since the end of 2009, apart from that recorded in March, when activity was given a considerable lift by the ending of the stamp duty holiday.
During November 2012, 21,700 loans were advanced to FTBs – an eight per cent climb on the month before and 24 per cent higher than the corresponding month in 2011.
Paul Smee, director-general of the CML – the membership of which is comprised of banks, building societies and other lenders – said: “Encouraging activity in the first-time buyer sector in November contributed to an uplift in house purchase lending suggesting that the underlying trend for year-on-year increases should continue.”
