Fewer mortgages were advanced in October, with a drop of 8% from the previous month – and 10% less mortgage loans were made available to first-time buyers compared to September, loan providers have stated.

In October there had been 44,500 home loans granted for property purchases, down 8% on September, according to the Council of Mortgage Lenders. Mortgages for first-time buyers fell by 10% with prospective borrowers having to find an average down payment of around 20% of the property’s value.

Home loan lending has been sluggish all year long, but, with the cessation of relief on stamp duty for first-time buyers in 3 months’ time, the CML hopes that there may be heightened activity for buyers hoping to get onto the property ladder at the beginning of 2012. This short-term exemption has allowed first-time buyers freedom from the 1% stamp duty on properties of below £250,000 until next March. However the government indicated that the stamp-duty holiday has not been effective in allowing more individuals to buy their first home.

The CML statistics reveal that the total amount of mortgages advanced dropped by 5% during October compared to the same month last year, and was 1% lower during the same time period for first-time buyers.