Last November saw a weakening in the housing market, according to newly released figures, with the number of mortgages falling by 12.4 per cent, showing the market slowing down heading into winter.
The Council of Mortgage Lenders (CML) has been reported to say that its members advanced 55,600 home purchase loans during November, in total worth £9.2 billion. This was not only a month on month decrease, but also dropped from November 2013 by 6.6 per cent. The increase in house prices over the year, however, meant that the value was down by just 1.1 per cent.
On the bright side, however, first time buyers were said to be making up a large portion of the market, accounting for a recorded 25,900 loans. This was down in October by 11.3 per cent, and was also down on the previous year, dropping by 3.4 per cent.
Interestingly, the average loan to value mortgage which was taken out by first time buyers was up slightly. In November 2013, the average was 80 per cent, but over the year to November 2014, it rose to 83 per cent.
This means people who are buying their first homes are becoming more able to put down smaller deposits, overcoming one of the biggest issues first time buyers face: a big deposit.
This was addressed by the Help to Buy schemes, which give people access to smaller deposit mortgages, but these figures either suggest that the Help to Buy schemes are working really well, or the average deposits for all mortgages are coming down, both of which are good news for first time buyers.