In the first quarter there were 71,710 house purchase loans granted, the highest opening quarter since 2007 when there were 116,898.
The mortgage market has recorded its busiest start to the year in nine years, e.surv’s Mortgage Monitor has claimed.
In the first quarter of 2016 there were 71,710 house purchase loans granted, the highest opening quarter since 2007 when there were 116,898.
However the market slowed between February and March – as house purchase approvals fell by 9.1% to 67,173 from February to March.
Confusingly however LSL Property Services/Acadata data released on the same day claimed that home sales increased by 30% between February and March.
Richard Sexton, director of e.surv chartered surveyors, said: “So far, it’s been a spring of sustainable lending.
“After a storm of activity from buy-to-let owners trying to beat the stamp duty deadline there’s been some more recent uncertainty about what the lending market will look like post-regulation.
“March has seen a calmer lending environment while remaining buoyant. Yes, house purchase loan numbers are slightly down – but overall borrowing levels are highly encouraging.”
First-time buyers played a bigger role in the market in March, with lending above 85% loan-to-value accounting for 17.1% of house purchase loans, up from 15.7% the previous month.
Sexton added: “First-time buyers are finding their feet again. Lenders are keen to invest in first-timers and with a variety of rates and options available, there’s a raft of choices out there. And first-time buyers don’t appear to be overly cautious, as the proportion of small-deposit borrowing rises.
“But it’s not all smooth sailing. Many first-timers will have been eagerly awaiting the March Budget, hoping the Chancellor would usher in real changes to improve their homeownership prospects. What they got was a disappointment
“Earlier initiatives like the Help to Buy ISA and Help to Buy Scheme have helped certain people, but have so far struggled to either have a widespread impact or solve the most serious problems. This new Lifetime ISA won’t significantly shorten the years aspiring buyers spend saving and will most likely struggle to make a real difference.”
