Mortgage lending up 43% in February

According to the Council Of Mortgage Lenders (CML) mortgage lending grew in February compared to the same month last year. The news that the mortgage market i continuing to grow will be welcomed by the government and the property industry. Year on year figures from the banks and building societies showed that lending for mortgages has increased by 43% and that a figure of just over £15bn was lent in February. With the news last week that the government is extending the Help To Buy Scheme (HTB) on new homes it is hoped that mortgage lending will continue to grow as the market returns to some kind of normality.

The extension of the HTB scheme is for new homes only and has been welcomed by developers who will hae seen profits boosted recently with the ready supply of new buyers looking to take advantage of the scheme. It is hope that this will encourage developers to build more homes with the confidence that the number of buyers looking will not dry up. The scheme is now due to run until 2020.

Help To Buy helps over 15,000 first time buyers

Figures releases over the weekend also showed that 88% of the loans issued under the HTB scheme have been to first time buyers and the average amount borrowed was £200,000. This is good news for the Chancellor as he has been criticised for forcing up house prices in London. The figures clearly show that HTB has helped the very people that it is aimed at. The government will be pleased as it has always insisted that there is no property bubble and that the HTB scheme must be allowed to first time buyers get a foot on the housing ladder.

In a further boost for the property market there was further good news from the Budget because there will be many pensioners that will not be eyeing the property market as a good place to put their pension pots. They have been given the freedom to invest their pensions themselves and with house prices rising at 9% per annum, buying a property will sound like a good idea.

Unlike an annuity, pensioners investing in a buy to let will not only receive a good rate of interest on their money but they will also get some capital appreciation on their hard earned cash. Also when they die any property that they own will be left to their beneficiaries. This is great news for pensioners and makes you realise what a con these annuities are. When a pensioner dies any annuity that they had disappears into the coffers of the insurance companies and is gone forever.