Local mortgage lenders have underlined their commitment to help first-time buyers as the number of people getting on to the housing ladder has risen.
New figures from the Council of Mortgage Lenders reveal that first-time buyer numbers surged by a fifth across the UK in March amid signs that people are finding it easier to get on the property ladder with a smaller deposit.
The proportion of first-time buyers taking out loans with a deposit of ten per cent or less increased to a quarter, its highest level in four years, the CML said. Some 19,100 loans worth £2.4 billion were advanced to people buying their first home in the month, showing a 20 per cent month-on-month increase.
First-time buyers are continuing to account for an increasing share of house purchase loans, rising to 45 per cent in March from 43 per cent in February.
Chris Smith, mortgage manager at Bradford-based Yorkshire Building Society, said 38 per cent of its home loans last year went to first-time buyers and the society is looking to increase the level in 2013.
He said: “It is very encouraging to see the increase in first-time buyer activity. More and more people believe now is the right time to buy and it is easy to understand why.
“With interest rates continuing to fall, the cost of a mortgage has never been so low, even for those with smaller deposits. They are very attractive circumstances to people who are renting but considering owning their own home. We want to help as many people as possible achieve their housing aspirations, including those trying to get on the property ladder.”
Kris Brewster, Skipton Building Society’s head of products, added: “In 2012 we helped 1,833 first-time buyers get onto the property ladder. We also lent £64 million to borrowers with modest deposits, at loan-to-value ratios of 90-95 per cent.
“We’re determined to provide solutions for first and next time buyers who have limited deposits or whose equity has been impacted by market conditions while lending prudently in a way which ensures borrowers do not overstretch themselves and can afford to meet their mortgage obligations going forwards.”
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