New figures from the Council of Mortgage lenders has revealed that lending for first-time buyers increased significantly in recent months.
In the fourth quarter of 2013, 13,400 loans were advanced to first-time buyers in London, an increase of 6% on the previous quarter and a rise of 33% compared to the fourth quarter of 2012.
Meanwhile, the number of the number of loans for house purchase in Scotland reached its highest level in the fourth quarter of 2013 since the second quarter of 2008.
Equally a total of 1,800 loans were advanced to first-time buyers in Northern Ireland in the fourth quarter of 2013. This was an increase compared to the third quarter of 13% and up 29% compared to the fourth quarter of 2012.
In Wales, the total number of loans advanced to first-time buyers overall in 2013 was 10,600, up 22% compared to 2012. The total value of these loans was £1.1bn which was up 28% compared to 2012, the CML said.
Kevin Russ, technical manager for individual protection at Friends Life said: “The new figures from the Council of Mortgage Lenders make it clear that more and more people are stepping onto the property ladder for first time. Buying a property is the biggest investment most people will make in their lifetime.
“Given that many of mortgages will be sold on an advised basis it is important that advisers inform consumers of their options when it comes to protecting their home and their family, with life cover being especially important if there are dependants.
“The booming mortgage market is likely to prompt an increased demand for related life products. There is still a worrying number of people who have mortgages but have no way to pay it off should something happen to them. Making customers aware of protection products is an important part of the mortgage process.”
