Loans for first time buyers up 11pc in 2012

Lending to first-time buyers increased 11% in 2012 as lending to borrowers with small deposits reached its highest level since the financial crisis, a detailed analysis of the 2012 mortgage market by e.surv chartered surveyors shows.

Its latest Mortgage Monitor revealed there were 63,896 house purchase loans granted to buyers with small deposits last year, up 11% from 57,691 in 2011. It marked the best year for high loan-to-value lending since 2007.

2012 was the strongest year for house purchase lending since the financial crisis, with the number of loans breaching the 600,000 mark for the first time since 2007. Purchase approvals rose 3% from 590,425 in 2011 to 607,058. The stabilisation of the Eurozone crisis, and access to cheaper mortgage funds for banks, were the foundations of the improvement. The increase in 2012 took house purchase lending levels to 16% higher than they were during the market’s nadir in 2008.

Peter Lawrence, Managing Director at Lawrence Rand said: “This report provides evidence of an improving mortgage market for first time buyers and this bodes well for 2013.”