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House purchase lending up year-on-year in November

House purchase lending saw a year-on-year rise in November for only the second time in 2011, shows data from the Council of Mortgage Lenders.

There were 47,000 loans for house purchase worth £6.9bn advanced in November, up 3% by number and 5% by value compared to November 2010.

This also represents an increase of 4% by number and 5% by value on the previous month.

Furthermore, remortgage loans were up 2% by number and 5% by value in November year-on-year at 31,200 loans worth £4bn. This represents a rise of 6% by number and 8% by value compared to October.

Meanwhile first-time buyers took out 17,300 loans worth £2.1bn in November, up 4% by volume and 5% by value compared to both October 2011 and November 2010.

First-time buyers accounted for 37% of the market in November, the same as in October.

Fixed-rate mortgages increased in popularity to their highest point in more than two years in November, with 65% of all borrowers taking out a fixed rate, up from 62% in October.

Paul Smee, director-general of the CML, says: “A rise in mortgage lending towards the end of 2011 is a welcome indicator for the industry considering confidence has been weak due to fragile economies both at home and in the eurozone.

“We should expect a further increase in first-time buyer activity over the next few months as they push through their purchases to take advantage of the Stamp Duty concession before it ends in March.”

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