Lending to buyers with low deposits increased in 2012
The number of first-time buyers with a low deposit who were able to get a footing on the UK property ladder in 2012 was at its highest level since the financial crisis hit, according to a new report.
The study from e.surv chartered surveyors found that 2012 had seen lending to newcomers increase by a full 11 per cent as more banks and other lenders gained confidence from government-backed schemes.
Funding for Lending has been promoted as a way to get more money into the property market by reducing the risk for banks, while the NewBuy scheme has allowed many with little deposit purchase through selected high-street lenders.
The report also discovered that 2012 was the strongest year for house purchase loans in five years, with 600,000 being approved for the first time since 2007, which may lead to more buyers looking to live in the best cities in the world.
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Richard Sexton, business development director of e.surv chartered surveyors, said: "Funding for Lending hasn't yet equated into more loans to first time buyers. But this still remains a realistic prospect. The scheme won't begin to have a full effect until 2013, and lenders are acutely aware the only way the mortgage market will recover to its pre-financial crisis high is if the first-time buyer market is jump started."