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2012 sees surge in First-time buyers

The Council of Mortgage Lenders (CML) has revealed that the number of first time buyers in the UK has increased by 23% in January 2012, when compared to 2011.

The results of the CML Regulated Mortgage Survey indicated that the UK’s slow housing market may finally be showing signs of recovery.

Figures from British banks, building societies and other lenders that are part of the Council of Mortgage Lenders (and make up around 95% of all residential mortgage lending) showed that there are now up to 11.2 million mortgages in Britain. Loans covering those mortgages are worth over £1.2 trillion.

“The year-on-year rise in house purchase lending suggests that lending levels are generally rising although we expect the trajectory to be bumpy rather than smooth this year,” said Director General of the CML, Paul Smee.

Smee added that the average deposits for first time buyers have remained at around 20% for over a year. However, he stressed that: “that figure may start to drift down gently over the coming months especially as NewBuy has been launched for new homes.”

January 2012 figures

Further figures from the survey revealed that Brits’ took up to 35,600 loans (worth £5.3 billion) last January in order to buy their first home.

This figure represents an increase of 22% by volume and 23% by value; compared to the same period a year before. However, if compared to December 2011, the January 2012 figures represent a fall of 25% by volume and 24% by value.

Buyers trapped in first homes

Interestingly, further data, recently published by the annual Second Stepper report from the Bank of Scotland, found that the current crisis is making it extremely difficult for Brits to purchase their second home.

Specifically, 65% of those surveyed admitted that high deposit demands from lenders had deterred them from becoming second-time buyers. A further 27% of Scottish second steppers stated that “it is now harder to go up the ladder than get on it in the first place”.

Making cutbacks and budgeting is the most effective way to manage your expenses. Unfortunately, however, budgeting is not always enough. Unsecured loans are available to help keep on top of your finances.

As with any form of borrowing, it is important to ensure that you are able to meet repayments and fully understand the terms and conditions attached to your loan.

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Andrew Wayland
Marketing Director at Everyday Loans
Andrew Wayland is a financial marketing expert and helped set up Everyday Loans back in 2006. Prior to his position as Head of Marketing for Everyday Loans he worked as the Head of Commercial Development for a tech start up and ran his own PR agency for around 5 years. LinkedIn: https://www.linkedin.com/in/andrew-wayland-9018074