Mortgage lending on the rise

Mortgage lending rose strongly in November driven by an increase in lending to first-time buyers, new figures show.

According to The Council of Mortgage Lenders (CML) the number of new loans to first-timers rose by 8% to 21,700 - up by nearly 25% on the year before.

The total number of new mortgages, for all types of buyer, rose by 6% in November to 52,700 - 13% up on the previous year.

The CML said first-time loans were at their highest for nearly three years. The total number of mortgages granted to home buyers was the highest for any November since 2007.

"Encouraging activity in the first-time buyer sector in November contributed to an uplift in house purchase lending, suggesting that the underlying trend for year-on-year increases should continue," said the CML's director general Paul Smee.

"We expect the Funding for Lending scheme to continue to encourage a downward drift in interest rates. This may prompt an increase in remortgage activity as borrowers seek to take advantage of lower rates."