Mortgage Advice Bureau comments on Land Registry and Help to Buy equity loan data

Brian Murphy, Head of Lending at Mortgage Advice Bureau (MAB), commented:

“The Land Registry figures suggest the house price recovery continued to hold strong in the October, with annual comparisons proving the market has come on in leaps and bounds compared to this time last year. This has boosted homeowners’ confidence as well as their housing equity, giving them leverage to access some of the more competitively priced deals currently on the market.”

“First time buyers will take some comfort from the fact that the growth rate has noticeably slowed in recent months as the effects of the Mortgage Market Review (MMR) have begun to kick in. This has introduced a more relaxed tempo into the housing market, allowing for recovery without negating affordability. Consumer demand also remains strong despite the more stringent affordability checks imposed by MMR, indicating a positive outlook for the rest of 2014.”

“Potential buyers have also been blessed with considerable financial assistance this year in the shape of the government’s Help to Buy scheme. The equity loan scheme (HTB1) alone has supported 35,962 property sales in its first 19 months, and our analysis shows consumers using the HTB1 scheme are able to purchase with just £15,479* of their own deposit funding thanks to the government’s 20% contribution. Lloyds recently increased its Help to Buy lending limit, and the continued backing of this scheme and higher loan-to-value (LTV) lending by the UK’s major lenders will be crucial to keep the door open to first-time buyers.”