First-time buyers driving mortgage market

Typical property for the average price in Rochdale

First-time buyers have been "driving the mortgage market forward" in the past year, according to the Council of Mortgage Lenders (CML).

The number of loans made to first-time buyers was up by 23% in 2013 compared with 2012 but, on average, these borrowers still needed to find a 20% deposit.

The total number of loans to first-time buyers reached 268,800, the CML said.

That was about 44% of all home loans advanced for house purchases in 2013.

This was the highest proportion since the year 2000.

However, the total amount of money borrowed by homeowners last year was still less than half of that seen at the peak of the housing boom in 2007.

Overall, the number of mortgages advanced for house purchases was up 11% in 2013 compared with the previous year.

The CML said that the introduction of government-backed schemes such as Help to Buy had helped to drive the market.

But, with demand building, the CML said that the process of securing a mortgage would become "more cumbersome and lengthy" for borrowers.

New rules that come into force in April mean that mortgage applicants are likely to be asked more questions and provide more evidence to prove that they can afford repayments, even if interest rates rise.