First Time Buyers Dominate the market!
The mortgage market is once again being dominated by first time buyers. Not since 1995 has this vital sector been seen so vibrant. It now makes up for more than fifty percent of all new mortgage applications, according to The Halifax. Reports show there was a significant rise in the number of new first-time buyer mortgage applications completed during 2018. The number of completions was at the highest level since 2006. This is good and positive news all round as first time buyers underpin the wider mortgage and property market.
With housing costs both for buying and renting so high, how come there are more first time buyers in the market than we’ve seen in years? We believe that part of the reason is because with national average rents of over £900 per month it’s really bringing into sharp contrast that it’s in the long term interests of first time buyers to get onto the property ladder as soon as possible. This is particularly so, now that currently they could be paying far less per month for a mortgage than on rent.
Additionally, there are better than ever incentives for first-time buyers….. There’s stamp duty relief of up to £300,000 to the ‘help to buy’ scheme. And, the help to buy scheme has been extended to 2023 and since its launch back in April 2013, it has helped more than 150,000 first time buyers get into property ownership. Where first time buyers are fortunate enough to have relatives with capital assets, there are now an increasing number of lender schemes that help first time buyers raise the necessary deposit through equity release or other gifted arrangements.
If you are a first time buyer and looking for advice from a mortgage broker, then use our search function above to find an adviser close to you today.
Published: 13 August 2019