Mortgage Lending Increases in February The number of mortgages loaned to borrows rose in February 2012 according to figures released by the Council of Mortgage Lenders (CML). London (I- Newswire) April 17, 2012 - First time buyers represented the largest increase in volume with a total of 14,100 mortgage loans valued at £1.7 billion, an increase of 8 per cent in the volume of mortgages and 6 per cent in mortgage value. The February 2012 figures have also increased year on year, up by 18 per cent in the volume of mortgages and by 21 per cent in mortgage value compared to figures in February 2011. The figures also showed that 51 per cent of first time buyers bought houses for sale priced between £125,000 and £250,000 during February 2012 which is an increase of 49 per cent since January 2012. The trend shows an increase because of the final complete month of the stamp duty tax exclusion for first time buyers before its expiry on 24th March 2012. The figures also show that since April 2011 first time buyers have spent more of their income repaying mortgage interest and also borrowed an average 80 per cent of their property's value during February. Mortgages for first time buyers are more affordable than the period during 2008. In February, home movers took out 22,500 mortgage loans worth £3.7 billion to buy property for sale, an increase of 2 per cent in volume and 3 per cent in mortgage value. The figures also show an increase in volume of 16 per cent, up by 19 per cent in mortgage value since February 2011. Home movers also spent a higher proportion of their salary on mortgage repayments, an increase of 1 per cent since January 2011 and borrowed an average 70% of their property's value during January and February. These figures show that mortgages are more affordable than previously and the salaries of mortgagees have increased during this time. However, the CML said the increase in mortgage volume and value may be temporary due to the stamp duty tax that first time buyers will have to pay at 1 per cent on properties priced between £125,000 and £250,000, and 3 per cent on properties between £250,000 and £500,000. Notes to Editors: What House? is a leading property website that features thousands of new build homes, including new homes in Scotland, new homes in Birmingham and new houses in Kent as well as across the UK.
Additional Resources About What House?: What House? is a leading property website that features thousands of new developments across the UK. It also provides the latest property news, valuation of homes and property and mortgage advice. Over the last 30 years, What House? has held their annual What House? Awards, which are the longest established New Homes awards in the UK recognising UK house builders and developers across 23 categories. Company Contact Information: What House? Sonya Bruce 8 Baltic Street East EC1Y 0UP Phone: 02073242800 Published in: Business Tags: Mortgages mortgage lending mortgage figures Published on: April 17, 2012 Original Source: Mortgage Lending Increases in February