The mortgage lending market has hit its highest point since 2008, having lent a reported £15.2bn in February, which was an increase of 43% from February 2013, so say the Council of Mortgage Lenders (CML).
This is a strong figure for this time of year, as winter usually sees a dip in the housing market. February had the lowest monthly capital handed out since June but, once the seasonal differences are taken into account, the market is growing, according to Bob Pannell of the CML.
He said “First time buyers have benefited most from the government’s Help to Buy initiatives, with the more recent mortgage guarantee scheme now starting to push typical loan to value levels higher.”
The initiatives in question are the Help to Buy Equity Loan and the Help to Buy Mortgage Guarantee scheme that were put in place by the government to help first time buyers get mortgages with deposits as low as 5% of the overall property value.
Furthermore, “the housing market got a further boost from this week’s Budget. This together with benign developments in the economy more widely, should bolster short-term sentiment and activity” Pannell added.
