CML regulated mortgage survey for December/Q4 2012

12 February 2013

Peter Williams, Executive Director of IMLA, comments

“Today’s figures from the Council of Mortgage Lenders are especially welcome given the increase in high loan to value (LTV) lending to first time buyers. With 1 in 40 taking out 95% mortgages, compared with less than 1 in 100 a year ago, it is clear that lenders’ confidence in market conditions is returning.

“The impact of the Funding for Lending scheme is not only boosting volumes and lowering pricing, but also encouraging lenders to consider higher levels of risk in order to help more borrowers onto the property ladder. Already one in five first time buyers are borrowing 90% or more, and our latest survey of intermediary lenders showed that the majority expect lending to increase at the 90-94% LTV range during 2013.

“Despite the slump in remortgaging activity last year, the 5% increase in the final quarter also shows this area of the market is primed for growth. Favourable borrowing rates are equally appealing whether you are looking to buy a home or remortgage your existing property, which explains why IMLA’s latest survey of mortgage brokers shows confidence in the growth of remortgage business has risen noticeably over the last year.”

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