First Time Buyers at Highest Level since 2007
First Time Buyers at Highest Level since 2007 – Data from UK Finance revealed that the number of First Time Buyers continues to rise. In fact, there are more First Time Buyers now seeking mortgage advice since 2007 (pre credit crunch). Over 35,000 first-time buyers took out mortgages during August. This is the highest since before the credit crunch, 12 years ago and a further increase of 0.7 on the previous month in July.
In my experience, external economic factors such as Brexit are sometimes likely to put of certain buyers off. Home movers are rarely 100% certain that they ought to move, so when you throw in some political uncertainty it’s completely natural for them to say, “Let’s just wait and see what happens”.
Things are clearer for First Time Buyers. If they have the deposit available (that is the hard bit) then the choices are stark: continue living with parents, waste money on rent or buy. Most prefer to buy if they can.
Increase in First Time Buyers
Over the past 10 years the number of First Time Buyers has increased by over 130%. This is because more 95% options are now available and access toHelp to Buy Equity Loan Mortgages.
Also with house prices generally slow to rise but wages starting to increase, first time buys are increasingly more able to make the first step on the property ladder
Over half of all homes purchased with a mortgage are by First Time Buyers with the remainder built up from Home Movers and Buy to Let Investors. The last time first time buyers had more than 50% of market share was in 1995 when only a small number of Buy to Lets were taking place.
The percentage of first time buyers has been rising steadily for nearly 20 years as the UK’s love affair with the property market stays as strong as ever.
In terms of value, homes in the North East of England are amongst the lowest. The average is currently just shy of £140,000.
All Round Mortgage Advice
For many buyers its important to have a competitive interest rate, first-time buyers will also want to compare the overall package of the mortgage deal, maybe looking to benefit on the upfront cost, from deals that offer free valuation and / or free legal fee package or even a cashback mortgage.
We find that First Time Buyers really value advice from a local Mortgage Broker. It’s not just about finding the cheapest deal for them. First time buyers appreciate having solid advice and guidance throughout the full buying process of first home. Clear advice, jargon free, explanations on such things as how to make an offer, which type of protection insurance to buy, what survey to go for and a many other questions answering.
At LincolnMoneyMan we love helping First Time Buyers achieve their goals. We’d love to hear from you if you think you’d benefit from a Free Mortgage Consultation to find out more.