First time buyers drive home loans to five year high

First time buyers helped mortgage lending in January 2013 to its highest level for

five years, according to figures from the Council of Mortgage Lenders (CML).

Despite a seasonal dip compared with December 2012 , 38,300 mortgages were

advanced in January, the strongest start to a year since 2008. 

For the third month in a row, first time buyers accounted for 42 per cent of all house

purchase loans.  The Bank of England’s Funding for Lending Scheme (FLS) that gives

lenders access to cheaper funding, has helped boost the housing market.  FLS now

appears to be the main reason why mortgage lenders are offering more

competitively priced mortgage products.  This is essential if first time buyers are

to be able to purchase a property.  Without first time buyers the housing market

will be unable to improve.