Following a similar trend to the rest of the UK, lending to first time buyers in Wales increased throughout 2012 and continued into the final quarter of the year.
Loans to home movers remained stable compared to the third quarter while remortgage lending picked up in the last quarter of the year.
In the fourth quarter some 2,500 loans worth £240 million were advanced to first time buyers in Wales, up by 14% on the third quarter and the last quarter of 2011.
With the exception of 2009 when the end of the previous stamp duty holiday boosted activity, it was the most amount of loans advanced in a single quarter since the last quarter of 2007 and the most by value for over four years in the second quarter 2008.
First time buyers in Wales borrowed on average 3.12 times their income in the fourth quarter, lower than the 3.26 times borrowed by their counterparts in the UK.
First time borrowers in Wales also continued to put down a smaller deposit than the rest of the UK at 85% loan to value ratio, while lower house prices, on average, meant that more first time buyers were exempt from paying stamp duty than in the UK.
In the fourth quarter 64% of first time buyers bought a property for less than £125,000 compared to 39% in the UK.
In total in 2012, 8,700 loans were advanced to first time buyers in Wales, up by 5% compared to 2011.
