The Council of Mortgage Lenders (CML) has revealed a 16 per cent increase in the number of loans approved for house purchase in April on the previous month. Although the figure represents a 28 per cent drop on the previous March, it suggests the start of a recovery in the housing market . The figures were particularly pleasing for first time buyers, with 13,500 loans worth £1.4 billion issued to first time buyers in April, up by 11 per cent on the previous month. In keeping with the trend, the figures were down by 28 per cent on the same month in 2008, but represent a significant increase on the record low of 8,900 first time buyer loans in January of this year.
The figures did, however, confirm the need for a high deposit in securing a loan. The average deposit for first time buyers stood at 25 per cent, more than double the 11 per cent of April 2008. However, after the series of interest rate cuts from the Bank of England, home loan repayments now account for just 15 per cent of first-time buyers’ income, the lowest in five years. Meanwhile, fixed rate mortgages are at their most popular in nearly a year.






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