Mortgage lending has made its lowest contribution to housing finance purchases this year (prior to the recession), as buyers used cash and equity to move in 2013, according to the IMLA.
Percentage of buyers making use of mortgages fell from a high of 76% in 2006, down to 65% in 2008. Having recovered to 67% in 2010, it  has once again dropped to an even lower percentage of 62% last year.

Mortgages have also contributed less than 40% of the value of property transactions in total in 2013, a first since current records began. This is down from 47% in 2010, even lower than it was during the recession, when mortgages contributed a measley 45% in 2008.

For every £10 spent on house purchases from 2013, mortgages only contributed £3.98. This suggests that whilst access to mortgages actually improved following last year (as well as the number of approvals rising), the market still remains subdued, continuing to favour existing buyers and owners with access to large sums of cash/investments.

IMLA states that three challenges must be made and managed in order to allow the mortgage market to recover during the long term. This will allow lenders to meet increased demand from first-time house buyers, as well as support the full range of responsible borrowers.

These challenges include the unwinding of support measures (Help to Buy/quantitative easing); tackling the low level of new housing supply; as well as ensuring the new ‘triple-lock’ of regulation does not excessively subdue the market.