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Over recent months, the government have taken steps to increase the availability of low-deposit mortgages in an aim to boost the housing market. However, new research has revealed that access to low-deposit loans may not be the magic bullet that the mortgage market needs.
New figures from the British Bankers' Association (BBA) show that there was a surprise fall in the number of mortgages approved in the UK in January. After signs that the government's Funding for Lending scheme was beginning to boost mortgage numbers, 14% fewer mortgages were agreed in January 2013 than in January 2012.
One of the UK's leading mortgage lenders is cutting its rates on its NewBuy deals, helping to improve access to lower deposit mortgages within the new-build sector. Nationwide Building Society has announced that it is cutting its NewBuy rates by up to 0.45%, resulting in cheaper mortgages to anyone buying through the NewBuy scheme.
The number of first-time buyer mortgages advanced in May 2012 was up by over a fifth compared to the same month last year. In a sign that the slump following the end of the stamp duty ‘holiday' is over, data showed that first-time buyers borrowed £2.3 billion in May 2012, up by almost 50% on April's figures. Mortgage lending was also up across the board, suggesting a small recovery in the housing market.
First-time buyers are continuing to rely on their parents to help them get onto the property ladder. That's the conclusion of recent research by the Council of Mortgage Lenders (CML) who believe that thousands of new homeowners are receiving help from the so-called ‘Bank of Mum and Dad'.