First time mortgage borrowers number goes higher


Posted December 18, 2012 by alexClay

In the month of October nearly 20,000 loans for first timers were in advance but the cautious market experts tagged them ‘the dealings of a fortunate a small number of them’.

 
CML said if the going on improvement in house purchase lending continued as expected then the coming year would be a more stable and positive year in the housing and mortgage markets. A grand total of 20000 home loans were advanced in this October month to take their first step on their property hierarchy. This total shows a sharp rise in the comparison of September month and up by a fifth in respect of October 2011.
The value of these loans has gone quite high. It has touched the magic figure of £2.5billion. In the September month this figure was about £2.2billion and in October 2011 it was £2.1billion. 40% of house purchase lending has been accounted with the second month running loans for first timers.
This increment in the loans lending is the result of the government’s funding for lending schemes which was introduced in the early August. During that time the first time mortgage lending rate was getting the downturn. Though, the figures of Council of Mortgage Lender show that the average deposit of first time buyers is still putting down of 20% and the price of borrowing is still lowest for those with the largest deposit.
Now the homes are available at more affordable prices despite of the time when the housing market was at its highest point in 2007. At that time the repaying of the capital and interest on loan used to cost an average of 25% of the total income of first time buyers. Now this cost of the repayment typically stands at 20% of the total income. In this festivals time if you require cash advance during this Christmas feel free to visit for extra cash help. Apply for text loans @ http://www.loansbytext.org.uk/
The 2011 census unveiled the face of the housing market how it has been affected by the mortgage drought and unaffordable house prices. From 2001 to 2011 the number of people who are living in private rented accommodation has gone to 15% from 9%.
Neil Ryner who is the director of property finance specialist Ryner and Partners expressed her happiness by saying that it is very good to see the number of first time buyers is going high because the health of the market completely depends on them.
The figures of the mortgage controlling body CML show that about 49,500 loans were advanced for house purchases over October which was only 43,500 in September month. In October the total value of house purchase loans was £7.3 billion which is 11% more than the September month and October 2011.
The CML’s director, Paul Smee said that this was a good indication that the October month possessed much more positive figures irrespective of the slowdown in September month. Now this can be expected that this growth will be continued in coming months as well.



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Issued By Alex Clay
Country United Arab Emirates
Categories Finance
Tags finance , market , cash , payday
Last Updated December 18, 2012