Interesting new data from the Council of Mortgage Lenders (CML) has revealed that the number of loans made to first time buyers (FTB) in January 2014 was up by 38% compared to the figures for January 2013.

The total number of loans advanced to home-owners for house purchase decreased in January, down 16% compared to December but up 30% on January 2013. Overall, 48,600 loans were advanced in January with a total in value of £8 billion, which was a decrease of 14% in value on December 2013 but a 43% increase in comparison to January 2013.

The total number of loans advanced to first-time buyers in January totalled 21,800, down 18% on December 2013, but an increase of 38% compared to January 2013. The total value of these loans was £3.1 billion, down 16% on December 2013, but a year-on-year increase of 55% in comparison to January 2013.

It appears that the introduction of the Help to Buy mortgage guarantee scheme has started to have an impact on FTB deposit requirements. The average loan-to-value for first-time buyers was 82% in January, up from 80% seen in December 2013 and a year previous in January 2013.

Similarly, the number of loans advanced to home movers for house purchase totalled 26,800 in January, down 15% in volume compared to December but up by 25% compared to January 2013. Home mover loans totalled £4.9 billion in value in January, which was a month-on-month decrease of 13% compared to December, but up 36% compared to January 2013.

“January is always a subdued month in the mortgage market but the underlying trend and strong year-on-year growth across all borrower groups indicates a strong start to 2014 continuing the sort of lending levels seen throughout 2013,” said Paul Smee of the CML.

“Lending to first-time buyers and home movers has continued its upward trend and this, coupled with the growth in remortgage and buy-to-let activity, would suggest that all parts of the market are open for business," he added.

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