First Time Buyer Numbers are on the Rise


The number of first-time buyers is on the rise, with a 38% rise in the amount of first-time buyers over the last 12 months. However, this may lead to a housing bubble, experts fear.
The increasing amount of mortgages acquired by first-time buyers has led to an increase of 55% in the value of loans given out; 21,800 loans were given out to first-time buyers worth £3.1bn. Furthermore, the average Loan to Value (LTV) ratio has risen from 80% to 82%, meaning lower deposits are more common, and that progress is being shown towards the government’s aim to make 95% mortgages more readily available.
One of the main factors in these changes are the government’s Help to Buy scheme which allows homeowners to get 95% mortgages by sweetening the deal for the mortgage lenders.
However, the 82% average LTV is still a ways off the recorded average 90% LTV seen in 2006 and 2007.
Buy-to-let investors are also coming back into the market, with a 34% increase in landlord loans from the previous year. This all adds to getting the housing market moving.
There is fear of a new housing bubble however. “The Council of Mortgage Lenders’ data will sustain concern that we are on the road to a new housing bubble. While mortgage activity is still not that strong compared to long-term norms, there is currently appreciable upward momentum”, so said the chief UK economist at IHS Global Insight, Howard Archer.

Get the Best Rates from Local Mortgage Advisers Now!

Finding the best mortgage advisers in your area is easy. Whether you're looking for buy to let, a residential mortgage, or a commercial loan, just enter your location into the form and answer a few questions. Then sit back and let the backend system do all the legwork to put you in touch with independent mortgage advisers near you!

Find the Best Rates from Local Mortgage Advisers!
Finding the best mortgage advisers in your area is easy. Whether you're looking for buy to let, a residential mortgage, or a commercial loan, just enter your location into the form and answer a few questions. Then sit back and let the backend system do all the legwork to put you in touch with independent mortgage advisers near you!

Powered by Bark

Close
100% secure