Good news for those of you looking to take out a mortgage this year - house purchase lending increased by 11% in January when compared to the previous year. This makes it the highest January total since 2008, according to new figures from the Council of Mortgage Lenders (CML).
The increase is down to greater first-time buyer and home mover activity, which rose compared to January last year – although remortgage lending was still 23% lower this January than at the start of 2012.
A total of 38,300 loans were advanced for house purchase in January, down on the 45,900 taken out in December, but an increase from the 34,600 loans advanced in January 2012. By value, house purchase lending totalled £5.7 billion, compared to £5.2 billion in January 2012, and £6.9 billion in December 2012.
Despite the seasonal dip, the CML says that January continues the underlying trend for increased house purchase lending
"Seasonal factors clearly had an impact on lending figures in January, but it still remains the best start to a year since 2008,” said CML director general Paul Smee. “Mortgage finance is available and lenders are open for business, allowing more borrowers to take the step into homeownership or move house in line with their needs."