FTB numbers at 5 year high
The CML said the number of first-time buyers in 2012 rose by 12% to 216,000, the highest number since 2007.
It attributed the overall increase to a general improvement in funding conditions and the effect of the Funding for Lending Scheme.
Commenting on first-time buyer trends, Charles Haresnape managing director of Aldermore Mortgages said: “The CML data shows that 2012 was the best year since 2007 for first-time buyers.
“It is encouraging to see government initiatives and lenders working in tandem to improve housing confidence.This will be a key driver for a sustainable economic recovery.”
The improvement in funding conditions and in particular the FLS has also stemmed the upwards pressure on interest rates seen through the first half of the year.
Mark Harris, chief executive of mortgage broker SPF Private Clients, said: ‘It is not too early to call the end of the mortgage impasse.
“The FLS is making more money available at cheaper rates to lenders, which is being passed onto borrowers, resulting in some of the cheapest mortgage rates ever seen.”
Average fixed-rates now stand at 3.84% having peaked at 4.25% in August.