The number of loans taken out in November 2012 by first-time buyers reached the largest monthly total since the end of 2009 according to figures release by the Council of Mortgage Lenders.
A total of 21,700 loans were advanced to first-time buyers worth £2.7 billion, representing an 8% rise compared to October and up by 24% on November last year.
For the second consecutive month, loans to first-time buyers accounted for 41% of all house purchase loans. This is rather higher than the usual proportion of around 38%.
Indicators of loan affordability remained stable in November, with the median loan-to-value (LTV) ratio staying at 80% while the percentage of income consumed by initial interest and capital repayments was unchanged at 20.0%.
First-time buyers, lending and affordability
| | Number of loans | Value of loans £m | Average loan to value | Average income multiple | Proportion of income spent on interest payments | Proportion of income spent on capital and interest payments |
| November
2012 | 21,700 | 2,700 | 80% | 3.22 | 13.3% | 20.0% |
| Change from
October 2012 | 8.0% | 8.0% | 80% | 3.23 | 13.5% | 20.0% |
| Change from
November 2011 | 24.0% | 22.7% | 80% | 3.26 | 12.2% | 19.3% |