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FTB figures 'hit two-year high'
The number of homeowner loans given to first-time buyers (FTB) in the UK reached a two-year high in December, according to new research.
Figures from the Council of Mortgage Lenders (CML) revealed that 24,900 loans were given to new property buyers during the month, which was believed to have been influenced by the expiry of the stamp duty concession at the end of the year.
During December, FTB loans rose 26 per cent from November by both volume and value.
Bob Pannell, author of the research, said it is key for consumers to take capital payments into account when assessing affordability.
He explained: "Typical capital and interest payments for a recent first-time buyer would represent about 21 per cent of pretax income.
"This is considerably more than the 14 to 15 per cent that mortgage interest costs alone would be and demonstrates why using initial mortgage interest costs to assess affordability risks giving an overly flattering picture."
Last week, research by CML found that buy-to-let lending increased for the second consecutive quarter in the final three months of 2009.