More property buyers are applying for a new mortgage on a new home instead of changing the deal on their existing property, research has revealed.

According to research from an independent mortgage firm, as a growing number of Brits begin purchasing new properties, a majority of the buyers are opting for new home loans.

For the first time since 2007, figures from the firm found that new loan purchases were higher than remortgages in May.

The statistics revealed that the number of mortgage applications for new properties had risen by over 10 per cent in the space of a month.

In May, 53.4 per cent of mortgages were taken out for new properties, in comparison to 40 per cent in April.

Spokesperson, Ray Boulger of the firm stated that this could indicate signs of recovery.

He said: "In 2008 purchases made up an average of 25 per cent of our business, however 2009 is a very different story. Purchases have taken an increasing share over the course of the year to date."

However, economist Paul Samter of the Council of Mortgage Lenders stated that despite the positive signs, he does not expect a significant recovery.

He said: “Lending volumes appear to have stabilised at extremely low levels, but the weak labour market and lenders’ limited access to funding will constrain activity for some time yet.”