First-time buyer mortgages hit a two-year peak in the final month of 2009 as homebuyers rushed to beat the end of the stamp duty holiday.

 

According to figures released by the Council of Mortgage Lenders, there were 24,900 loans granted to first-time buyers in December, the highest number since November 2007.

 

In addition, the report revealed that of the 62,000 house purchase loans accepted in December, 55 per cent were for properties under £175,000 - the level exempt from stamp duty until January 1st.

 

Francesca Steele, writing in her Times newspaper column, explained that first-time buyer levels were up 63 per cent on November, a clear sign that Britons were trying to buy before the one per cent stamp duty applied to properties over £125,000 was reinstated.

 

She added that the figures showed that 46,000 people had their homes repossessed in 2009 lower than the 48,000 forecast but still the worst on record since 1996.

 

Meanwhile, mortgage specialist John Charcol recently claimed that remortgaging may become an attractive proposition for some homeowners because lenders are increasing their standard variable rates .