First-time buyers numbers surge in November
In contrast, Council of Mortgage Lender (CML) data showed remortgaging fell against both the previous month and 2011.
UK mortgage providers lent a total of 21,700 loans to first-time buyers in October worth £2.7bn, which is 8% up on the previous month and 24% on November last year.
The average loan-to-value ratio stayed at 80% and capital and interest repayments came to an average of 20% of income.
In November, lenders offered 52,700 loans, up by 13% compared to the same period in 2011, and up by 6% compared to October.
By value, house purchase loans were worth £7.7bn in November, a rise of 10% on November last year and 4% compared to October.
However, remortgage lending fell 26% year-on-year.
CML director general Paul Smee said: “Encouraging activity in the first-time buyer sector in November contributed to an uplift in house purchase lending suggesting that the underlying trend for year-on-year increases should continue.
“We expect the Funding for Lending scheme to continue to encourage a downward drift in interest rates. This may prompt an increase in remortgage activity as borrowers seek to take advantage of lower rates.”
Charles Haresnape, managing director of Aldermore Residential Mortgages, said: “Our own experience at Aldermore is that Funding for Lending is making a difference, which bodes well for 2013. Let’s hope consumers have greater confidence and are willing to commit to buying property during the year ahead.”