Lending to first-time buyers increased by 11% in 2012 as the number of loans extended to borrowers with small deposits rose from 57,691 in 2011 to 63,896. The latest figures mark 2012 as the best year for high LTV lending – defined as 85% plus – since 2007, according to e.surv’s Mortgage Monitor analysis.
A similarly positive picture for overall lending also emerged since the number of house purchase loans climbed above the 600,000 mark for the first time since 2007. Purchase approvals rose 3%, from 590,425 in 2011 to 607,058 in 2012.
The end of the government’s stamp duty holiday in March is thought to have been a strong contributor to 2012’s higher levels of lending, particularly among FTBs.
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